Before we get to our latest idea, we are tightening our stop-loss in one long idea:
Amkor Technology (AMKR): to $27.20 from $25.80
In a search for stocks with positive technical catalysts and no signs of upside exhaustion, we found Worthington Industries (WOR), a mid-cap steel company, as a new long idea.
WOR broke out above long-term resistance from March 2022 in reaction to earnings yesterday. The breakout is associated with a weekly MACD “buy” signal suggesting WOR has regained intermediate-term momentum. Short and long-term momentum are positive, as well, and there are no signs of upside exhaustion.
WOR has also seen a breakout in its ratio versus the SPX this week, supporting a phase of outperformance following a three-month period of relative weakness. An uptrend in the ratio is intact since September 2022, suggesting the stock has positive long-term momentum in relative terms.
An intermediate-term target for WOR can be derived by a measured move projection near $82, which is approximately 19% above current levels. A stop-loss level can be gauged by the bottom of yesterday’s gap, near $64.
Worthington Industries (WOR, $69.06)
Target: $82
Stop-Loss: $64