Chart of the Week: Futu Holdings
Hey good morning everybody. Happy Wednesday. It’s time for our chart of the week. We’re gonna focus in on one hot name over here. It’s called Futu Holdings. FUTU is the symbol. Let’s take a look at this chart. It’s been really strong.
So, no denying the fact that this stock is in an uptrend, right? So you can see a series of higher highs, higher lows. The stock has been tailing up with the 20 day moving average – that’s this dotted line right over here.
You see every time it comes back and checks down to that dotted line it pulls back right back up again, it comes back down, pulls right back up again, came back down a little below it over here at the beginning of August, and came right back up again.
And now on Monday, September 8, it had come back and tested that 20 day moving average one more time. So I think it’s gonna make a run here to $200. Maybe a little past that to $220.
We’ve had really good strong on balance volume. We had really great volume trends over the past couple of months as well. You can see that. The stock has been going up. We’ve had good strong volume prints on the up days. Relative strength has been real good.
So not only has been volume been good but price action has been good relative to the rest of the market
This is one of those hot momentum names. It’s gonna bounce around quite a bit, but the long term trend seems to be up for Futu Holdings.
Take a look at this one. It might surprise you that it’s gonna keep on going.
And a lot of people tell you, “Look, if it gets overbought, it’s time to take it off the table.” Momentum can take a long time before it exhausts.
Take my advice here and take a look at this name over here. It could keep going. Sure it could come back and retreat. That’s why we have stops and that’s why we play options. We define our risk accordingly.
So take a look at Futu Holdings; FUTU. Thanks so much for watching everyone.
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