Focus on the stocks that are working…Like Focus Financial ($FOCS) (December 03, 2020)
FOCS SP-500
I want to look at Focus Financial Partners ( NASDAQ: FOCS ); big huge volume today, nice break out. We put this on the Active Trade List today after the stock broke out. Frankly, I got into it a little later than I would have liked.
I really like the way this stock broke out; it had been trading sideways right around here, $41.00 I would say was resistance, it made a series of higher lows. If you look at the Bollinger Bands here, the little pink things here, they are pretty and that is what we want to see. We want to see tight Bollinger Bands and then we see the stock trading along like this. It traded pretty decisively in the upper half of the Bollinger Band complex. That’s from the 20-day moving average up until the upper band.
It has finally broken out above that today and as I look at the weekly chart, it’s still an IPO, that’s how you have got to look at it from 2018. I can see this stock having broken out above here, this is a little bit wider range here and this has some room to move. I would look at it and kind of have a price target, it might be a little bit aggressive, but I would have a price target of $50.00 on this.
Again, this is a weekly chart so I’m not talking about tomorrow or even next week. But if you look at the way this stock is trading, the way that it really came up today out of this congestion, this is a stock that definitely has some room to move. Now, you’re not going to get this until after hours so I will just say this if the stock pulls back a bit tomorrow, that’s a gift. That’s a gift and I think you have got to look at it, make sure that it holds above, we’ll say above 41.00, right around there, you really want it to hold there.
Otherwise, if it falls lower than that you kind of have to consider it to be a failed breakout. And we are in this market even though the indexes are moving higher we are seeing an increased number of failed breakouts. That’s an issue because if you buy a breakout and it fails it costs you money so you don’t want to do too much of that.
The reason I feel extra confident about this is because of this volume. This is heavy institutional volume. It doesn’t mean everything because we’ve seen it in the past, where you’ve got big volume here and then the stock ultimately falls back. But we have to look at this as a real bullish sign so I think that is something you should consider.
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