Please join me in welcoming Kevin Abbott, CMT, who joined Fairlead Strategies in September as a Senior Analyst alongside Will Tamplin, both of whom will be contributing to our Substack ideas and research reports. Kevin spent the last 10 years of his career at Fidelity, where he supported their famed “Chart Room.”
Of our existing ideas, we recommend closing positions in PBF Energy (PBF) which has a counter-trend signal from the DeMARK Indicators that suggest its rally may be tiring out.
As we continue to focus on stocks with strong recovery potential, we highlight Amphenol (APH):
APH has advanced from a two-month corrective phase on strong momentum, pivoting higher with the market mid-month. The stock looks poised to continue higher after brief consolidation this week, as the 50- and 200-day moving averages have been surmounted.
With its rally, APH generated a weekly MACD “buy” signal last week, enhanced by a stochastic upturn the week prior. We expect momentum tailwinds to ultimately carry APH above weekly cloud resistance, currently near $76-77.
Our upside target is ~$88 defined by last year’s all-time high for APH. This may be aggressive for this environment, so we would adhere to a stop-loss threshold of ~$72, based on the intersection of the daily cloud and 200-day moving average.
Amphenol (APH, $75.83)
Target: $88
Stop-Loss: $72