Financial Freedom

IBD – Characteristics of Stocks Showing Resilience

Characteristics of Stocks Showing Resilience

One of my weekend routine is to watch Weekly IBD Investing Show which feature Current Market Outlook, education of investing called How To Invest and Stocks to Watch. The IBD Big Picture now is Market in Correction with Friday’s action of Broad rally in lower trade.

IBD Investing Show – How to Make Money in Stocks dated 16th January 2016

5 characteristics of Stocks Showing Resilience in Down Market based on CAN SLIM

  1. Look for rising Relative Strength Line (RS)

    Rising RS line, preferable near new high ground Source:
    Rising RS line, preferable near new high ground
  2. Look for stock to form base

  3. Look for tight trading (Weekly Chart)
  4. Look for support at key benchmarks (usually 10 weeks MA in Weekly Chart)

  5. Look for accumulation on the right side of base
    IBD Accumulation on Right side of base

From IBD’s Stock to Watch with above characteristics:

  • Amazon (AMZN)
  • McDonald’s (MCD)
  • Ulta Beauty (ULTA)
  • Reynolds American (RAI)

In my personal opinion, MCD Daily Chart look good, with support at MA50 but MCD will announce earning on 25th January 2016, before market open. For me, I will not enter into a position if the stock going to have earning announcement in less than 5 days. Earning play is another game set , which is not for me.

You can view this episode of IBD Investing Show here.

Disclaimer: This website is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. The publishers of this website are not brokers, dealers or registered investment advisors and do not attempt or intend to influence the purchase or sale of any security. does not guarantee the accuracy or completeness of the information displayed. This is shared purely for educational purposes only and as to documented my journey.