Hey, Ross here:
Here’s an actionable trading idea for you.
Chart of the Day
Certara (CERT) just finished an exciting March.
The medical software company surged 15% to start the month after reporting a solid beat on earnings for the quarter.
It jumped again on March 16 when Dow Jones announced the stock would be joining the SmallCap 600 index. Stocks always jump on news like this since it means thousands of funds and ETFs which track this index will have to buy the stock.
The addition was completed on March 21, providing a final boost to CERT’s share price.
As you can see in the chart above, shares have consolidated around the $24 level for the last two weeks. This is unsurprising given the significance of this level.
In the weekly chart below, you’ll notice how CERT stock collapsed here back in July.
Investors who bought the stock prior to that time who have been waiting to get out at breakeven are likely taking profits at this level.
A move above $25 to new 52-week highs, especially if it happens on high volume, would be a tempting buy signal.
P.S. Want me to send you special trade prospects and potential market moves directly to your phone? Text the word ross to 74121.
Insight of the Day
Never “lock in” your identity to being a bull or bear.
Markets have generally been on the uptrend over the past 6 months. There were many pullbacks along the way – each one a chance for the “perma-bears” to come out of the woodwork and scream that the sky is falling.
But here’s the harsh truth – because these bears have self-identified as bears, they’re trapped. And it’s caused them to miss out in some incredible opportunities over the past 6 months.
And now, as the charts signal another incoming rally, these bears are crying about how a recession is inevitable and that we haven’t reached the market bottoms yet.
You know what? They could be right. We could very well enter a recession later this year and hit new market bottoms.
If that happens, we’ll adjust accordingly.
But in the meantime, why not profit from the opportunities that are staring us in the face right now?
I’m sharing exactly how to do that in this presentation here.
Embrace the surge,
Editor, Stock Surge Daily