Some mean reversion swing tradings ideas before market opening

CROCS INC (CROX)       118.35   -2.53 (-2.09%)

After market: 118.37 +0.02 (+0.02%)

News Image
Some mean reversion swing tradings ideas before market opening6 months ago - Chartmill

After yesterday's extremely red stock market day, we noticed that ChartMill spotted quite a few stocks that previously showed an upward breakout but fell back below their breakout levels after yesterday's session.

This screen shows all US stocks with a minimum price of $5 and an average trading volume higher than 500,000. In addition, only stocks whose price is below the 200-day average are held and thus we can assume that the long-term trend is downward.

For the rest, there are three specific custom filters based on the bollinger bands.

  • The first custom filter stipulates that the close of the previous candle must be higher than the upper bollinger band.

  • The second custom filter stipulates that the closing price of the most recent candle must be lower than the low of the previous candle.

This filter combination gives 90 results.

  • To refine it further, one additional custom filter was added with the condition that yesterday's high must equal the highest price of the past 20 days. This way, emphasis is placed on stocks that had only recently broken out.

This brings the number of results to 27 which you can consult here.

Please note, for this link a historical date was set to 2022-09-13 so that you can continue to see the results that came out of the screener by then, so the screen does not automatically adjust to the most recent closing prices. If you wish to do so, simply remove the historical date via the general tab of the stock screener page.

Let's take a closer look at some interesting swing trading setups.

Fortinet has had a strong rise and the day before yesterday it was trading at its highest price since August 11. Yesterday, however, the stock opened with quite a gap down and ended up closing more than 7% lower with significant selling volume. First support around $47.5 is in sight if the price can break yesterday's low.

Nation Vision Holdings had also risen sharply since early September and the stock was able to close above the high of August 16 last Monday. Yesterday then saw the formation of a very long bearish candle and a drop of almost 7%. First support is around $33.60. In terms of risk/reward certainly not the best candidate but worth keeping an eye on if the price falls below the current low.

Crox: A textbook example of a nice breakout the day before yesterday but disappointing inflation figures prevented a further rise in this stock as well. The price opened yesterday with a large gap down and eventually went down almost 10%. We will have to wait and see if yesterday's low can be broken today. In that case, the road is clear to the $68.15 level.

Disclaimer: These trading ideas are merely to demonstrate what ChartMill is capable of and shows some typical results of a breakout filter. It is in no way actual financial advise to invest or trade in these stocks. The author has no pre-existing position in any of these stocks.


CROX Links


News Imagea day ago - Market News VideoNoteworthy Thursday Option Activity: QCOM, MRVL, CROXNews Image3 days ago - MarketBeatOn Holding AG Sprints Higher on Margin Expansion and Guidance

Swiss sports and footwear maker On Holding AG (NYSE: ONON) has been creeping up under the radar since debuting its IPO in September 2021. Its shares

News Image3 days ago - Seeking AlphaApparel and footwear stocks rally ahead of Nike's earnings report

Retail stocks rallied on Tuesday morning after Treasury Secretary Janet Yellen’s reassurances on the banking crisis brought buyers back into the sector. Read more.

News Image4 days ago - Investor's Business DailyNKE Stock Gains Near Buy Point With Nike Earnings On Deck

Nike earnings will tell investors about the state of global consumer demand, amid headwinds.

News Image4 days ago - Market News VideoTop Buys by Directors: Smach's $339.4K Bet on CROXNews Image5 days ago - The Motley Fool1 Growth Stock Down 34% to Buy Right Now

Investors should appreciate this company's ability to rapidly increase revenue in a difficult macro environment.

News Image10 days ago - Market News VideoNoteworthy Tuesday Option Activity: ALK, AMLX, CROXNews Image11 days ago - The Motley FoolA Bull Market Is Coming. Is It Too Late to Buy Crocs Stock?

Crocs stock has soared off its multi-year lows, and it isn't looking back.

News Image12 days ago - MarketBeatCrocs May be a Comfortable Fit for Growth-Oriented Investors

Inflation and other macroeconomic headwinds may hold CROX stock back in the short term, but this is definitely one for your watchlist

News Image17 days ago - Crocs, Inc.Crocs, Inc. to Present at the UBS Global Consumer and Retail Conference

/PRNewswire/ -- Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for women, men, and children, today announced that it will present at...

News Image18 days ago - Market News VideoNoteworthy Monday Option Activity: DUK, SPLK, CROXNews Imagea month ago - The Motley Fool1 Ridiculously Cheap Stock You'll Regret Not Buying on the Dip

This popular footwear business is down about 30% from its all-time high.

Follow us for more