When A Signal Returns
We tried to open a trade in today’s company last month. That order didn’t fill. A fresh technical signal has brought the stock back into our trade planning.
The company makes technology that lets retailers identify individual products wirelessly and track their movement through stores and supply chains. Better inventory visibility helps stores replenish goods and spend less time counting stock.
Portfolio Armor’s Top Names list ranks stocks by their estimated six-month returns. Since late 2022, our system’s Top Names have nearly doubled the performance of the leading market-tracking SPDR S&P 500 Trust ETF (SPY 0.00%↑) over the next six months, across 173 rolling 6-month time periods.
We start with those Top Names and then look for a qualifying technical setup and an options trade with attractive economics. Today’s candidate has positive technical ratings, a consolidation setup and a closing price above its 50-day exponential moving average.
A Near-Term Test
The company’s next earnings report is scheduled for next week. Its latest quarter set operating records, while its guidance points to a softer following quarter. The coming results and outlook will help us assess whether sales can build on that record quarter.
We’re placing a new bullish options trade today.
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Today’s Top Names Trade
Theme: Retailers automate inventory tracking.
RSI: 48; Chartmill Technical Rating: 7; Setup Rating: 8; Fundamental Rating: 4.