Feel like you missed out on the rally? Here are a couple of stocks you might have missed. Check out Ring Central ($RNG) and TAL Education Group ($TAL)
RNG MSFT RNG TAL
I want to look at a couple of stocks that I think have a pretty good chance of continuing to move higher. We got a lot of stuff this morning, these big rallies off of Friday’s lows. We could have more upside in stuff like Microsoft ( NASDAQ: MSFT ); at some point you just have to say it’s volatility and just kind of leave it at that.
With respect to like Ring Central ( NYSE: RNG ), think about this, there are no implications relative to the Coronavirus or any of the fallout from this unless maybe some of this stuff is made in China, something like that. The bottom line is, the stuff that this company makes is not anything that is going to be hurt by the current situation.
We look at the weekly chart here and this stock has just been chugging along. On a daily chart, this didn’t really have much of a pullback. In fact, the big pullback was a week ago and by the time the stock pulled back on Friday it basically closed about flat from the prior day. Here’s Thursday, here’s Friday and so this has not had much of a pullback.
For a short-term trade like today or tomorrow it sure wouldn’t be my trade. But for a longer-term trade, I think it works. Now, this yellow line here, this thing, this is called an anchored VWAP. This, I think, is a perfect setup here because the stock is above the average price based on volume since the company reported earnings back here. And if you look at the weekly chart, this kind of works too. So I think Ring Central ( NYSE: RNG ) works here.
Another one that I think is good is TAL Education ( NYSE: TAL ). This is an online Chinese education company. One thing we know about the Chinese culture, they are kind of big on education. With all of these guys having to keep their families indoors, I don’t think they are in there playing Nintendo or Parcheesi; they’re not doing that.
I think a company like TAL ( NYSE: TAL ) and maybe some of the others as well but this is one that has my attention; this is a stock that I think can continue to do well. Now, you have to look at your time frame. I am not sure that I would wait to buy this stock on a break out above 60.00, if it does breakout above 60.00 that would be great. I think, ultimately, it’s going to happen. But when we look and see how the stock is consolidating here on a weekly chart, frankly, hopefully, we some kind of a pullback, a little drift lower over the next few days and you can buy this stock closer to the 50-day moving average.
However, keep something in mind: Each day that the stock drifts sideways or even runs up a little bit the 50-day moving average also moves up. And so as each day or week goes by the 50-day moving average gets closer to the price as opposed to the price getting closer to the 50-day moving average. I think you could, actually, start a little position. Again, I have a hard time buying something after it is up 6.6 percent in one day; but if this thing pulls back at all I think it could be a good place for you to start a position.
These are just two stocks that I think still work even after the big run-up that we’ve had from Friday’s open until today’s close.
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