Tuesday, July 30, 2024

The No. 1 Watchlist Stock on my Scanner Right Now…

Trade of the Day Wake-Up Watchlist

"There's a strong chance we see an earnings surge on this stock."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

I start every Monday looking at the best trade setups I can find.

And yesterday I discovered that GE Aerospace (GE) fit my criteria for a top stock to watch.

There are several reasons I like GE this week.

For one, the company reported strong earnings last week. It comfortably beat at $1.20 a share, and now its stock is soaring 62% vs. a year earlier.

But the truth is…

Other stocks on my watchlist also reported strong earnings. Yet I still chose GE over those stocks for a few other reasons.

For one, it's already up near all-time highs.

Second, it has a beautiful daily squeeze that was firing long yesterday.

Lastly, it has a clear pattern that shows it's consolidating near those highs.

Normally when I see an earnings beat like this, I like to look at the company's chart for a pullback or rest period before a potential move back upward.

But as you'll see in the chart below, GE already had its rest or "pullback" period.

 

Take a close look at the chart. You'll see back in January that GE reported earnings (that little yellow dot illustrates earnings day.) Next, you'll see that first pink line after the yellow dot showing the post earnings surge. The stock was surging upward from early 2024 all the way until mid April.

Then, you'll see it basically went nowhere from late April all the way until now. This happened when the company wasn't reporting earnings.

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But as I mentioned, the company just reported another earnings beat last week. And I believe were primed for another potential surge like we saw earlier in the year. I drew another pink line to show how I think the stock could move in the near future.

That's why GE Aerospace is one of my top watchlist stocks this week. Since it's already pulled back, there's a strong chance we're going to see an earnings profit surge soon.

Action Plan: When I see GE Aerospace's chart, I salivate. I'm looking to go long on the stock and play its earnings profit surge over the next month.

Click here to unlock that trade and see how I use artificial intelligence to discover trade setups like GE.

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