We are removing our short idea in Churchill Downs Inc. (CHDN) as it looks poised for an oversold bounce near support.
We feature a midcap long idea in the consulting and engineering business with Tetra Tech, Inc. (TTEK):
TTEK has discovered support at its rising 200-day (~40-week) moving average following a pullback within its long-term uptrend. The stock appears set up for near-term upside follow-through, noting our short-term indicators point higher in a reflection of improved momentum.
In a strong tape, we think TTEK can break out above interim resistance near $170, defining the upper boundary of a long-term ascending triangle pattern. An oversold upturn in the weekly stochastics acts as a positive catalyst and supports further improvement in intermediate-term momentum.
Secondary resistance near $193 can be used as a long-term price objective for TTEK. A stop-loss can be placed below the 200-day moving average near $151.
Tetra Tech Inc (TTEK, $158.30)
Target: $193
Stop-loss: $151
Tomorrow, October 10th, I’ll be co-hosting a special event for Fairlead Strategies’ research clients at 12:00pm ET with Austin Hankwitz (CEO Witz Ventures/Rate of Return newsletter/Rich Habits podcast) for a discussion about market volatility and three actionable ideas from a bottom-up fundamental and technical perspective.
Please sign up for a free 30-day trial of Fairlead Strategies research to gain access to this event.
Austin Hankwitz has been revered by CNBC as one of the “new leading voices for common sense investing and financial literacy” due to his popular written and video content. Austin draws from experiences as a Strategic Financial Analyst for Amedisys (AMED) and high-ranking Finance student at the University of Tennessee. He quickly grew a dedicated community of over 900,000 followers across platforms and thousands of subscribers to his long-form written analysis. He’s invested in 30+ startups across all rounds of financing and has been featured in Bloomberg, Business Insider, CNBC, Market Watch, New York Times and many more.
See below for a link to check out Rate of Return.