The ABC’s of Stock Search in a Market Pullback

• Posted by Greg Harmon
• on September 25th, 2014

With the market selling off the last few days it is interesting to see stocks that are holding up. These are sometimes talked of as defensive stocks but they can become the leaders of the next leg after a pullback. One of these today is AmerisourceBergen, $ABC.

AmerisourceBergen has been consolidating in an ascending triangle since the end of July. You can see from the chart above that it went through a similar set up prior to that. And as the Bollinger bands tightened and the MACD crossed up the stock popped higher. It does not have to do it again, but wouldn’t you feel kind of silly if you knew about this and you were not ready to buy if it does give the signal? The Measured Move out of the pattern would target 82, but it went further than the Measured Move on the last pop.

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