The method used to find possible investment choices joins a strict technical structure with attention to fundamental growth speed. This process is modeled on the organized stock picking system made common by trader Mark Minervini, which stresses finding securities in solid, confirmed upward price movements. The technical base is formed using Minervini's Trend Template, a group of rules made to sort for stocks showing forceful price movement and agreement along important moving averages. This technical force is then combined with a filter for high growth momentum (HGM), looking for firms that are not only moving favorably on charts but also showing speeding business foundations. The aim is to find stocks where healthy price behavior is backed by basic company growth, possibly providing a combination of technical and fundamental supporting forces.
A Standard Technical Pattern
Axos Financial Inc (NYSE:AX) offers a clear example for this joined process. From a technical view, the stock matches the Minervini Trend Template closely, which is important for the plan as it aims to put money in the path of confirmed movement, staying away from poor or consolidating stocks. The present technical view for AX is very forceful.
- Price Above Important Averages: The stock price is trading notably above its 50-day ($87.71), 150-day ($85.71), and 200-day ($81.49) simple moving averages (SMAs). This layered support is a main idea of the Trend Template, showing continued buying interest across short, medium, and long-term periods.
- Favorable Moving Average Order: The moving averages are in a positive order, with the shorter-term averages higher than the longer-term ones. Specifically, the 50-day SMA is above both the 150-day and 200-day SMAs, and the 150-day SMA is above the 200-day SMA. This "ordered" arrangement verifies a distinct and structured upward movement.
- Nearness to Highs: AX is trading within 1% of its 52-week high, showing it is a leading stock and has little resistance above. Also, its present price is more than 80% above its 52-week low, showing notable movement from its lowest points.
- Better Relative Performance: With a ChartMill Relative Strength (CRS) score of 89.39, AX is doing better than almost 90% of the wider market. High relative performance is a central part of the Minervini thinking, as it finds market-leading stocks that often do better during positive market periods.
This combination of points has given AX a top Technical Rating of 10 from ChartMill, putting it in the highest group of stocks from a trend and movement view. The plan focuses on such technical soundness to take part in existing force instead of trying to guess a turn.
Supported by Growth Speed
While a forceful chart is necessary, the plan tries to know the "reason" behind the price move. This is where the High Growth Momentum (HGM) rating is important, judging the fundamental speeding that often powers forceful price trends. AX's latest financial results indicate its technical rise is backed by bettering business activity.
- Speeding Earnings Growth: A main sign for growth investors is a good turn in profits. AX's latest quarterly earnings per share (EPS) grew 25% year-over-year, a notable speed increase from the 0.5% growth seen the quarter before. This return in profit growth can work as a forceful reason for big investor attention.
- Healthy Revenue Growth: Supporting the earnings result, the firm's last quarter revenue jumped 25.1% compared to the same time last year. This revenue force gives a firm base for continued profit growth.
- Analyst Trust: Future guesses have been moved up, with the average EPS guess for the next fiscal year increasing 2.5% over the past three months. Such changes often come before continued good results as analyst feeling gets better.
- Good Profitability: The firm keeps profit margins above 34%, showing effective work and price strength in its digital banking area.
These parts lead to a positive growth speed outline, suggesting the stock's technical force is not only speculative but may be based on real business gain. For the high-growth part of the plan, this speed increase in main financial numbers is key, as it often draws the continued buying from large investors that pushes major price gains.
Technical Soundness and Position Points
ChartMill's full technical report for AX gives a complete summary. The study notes the stock's long and short-term trends are both positive, its results place it high in the banking field, and it is trading near 52-week highs with supporting trade volume. The report gives a top technical rating of 10, showing this outstanding trend soundness.
However, the report also gives an important note for possible investors: while the technical rating is outstanding, the present Position Quality rating is lower at 3. This shows that after a forceful upward move, AX is up almost 15% in the past month, the stock may be stretched in the short term and could gain from a time of consolidation. The report clearly says, "Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry." This matches careful trading practice, which often looks for entry points on dips to support within a longer-term upward movement instead of following breakouts. You can see the full technical study here: ChartMill Technical Report for AX.
Closing
Axos Financial Inc shows the kind of choice this joined filtering method aims to find: a firm showing both the technical features of a market leader in a solid upward trend and the fundamental signals of speeding growth movement. Its match with the Minervini Trend Template gives a structure for knowing its price force, while its HGM outline gives a reason for that force. For investors following such a structured process, AX stands as a stock to observe closely, with the present plan suggesting watchfulness for a more favorable risk/reward entry point if a useful pause in its rise happens.
Want to find similar possible choices? You can use the "High Growth Momentum + Trend Template" filter yourself to see other stocks that meet these specific technical and growth rules. Click here to use the filter.
Disclaimer: This article is for information and learning only. It is not meant as investment guidance, nor does it form a suggestion to buy, sell, or keep any security. The study is based on given data and filtering methods described, and past results are not a sign of future results. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.
