Monday, January 30, 2023
HomeStockHigh Ten Shares in Accumulation Part | The Conscious Investor

High Ten Shares in Accumulation Part | The Conscious Investor

When somebody sends me a ticker to overview, the very first thing I do is deliver up my commonplace two-year each day chart on StockCharts. And the very first query I ask myself is at all times the identical: is that this chart in an accumulation part or a distribution part?

Now that may be a considerably subjective query to make sure, however the technical toolkit offers some ways to quantify developments and measure development power. For me, “accumulation” means that consumers are pushing costs larger, thus the inventory is in an uptrend. And “distribution” means primarily an absence of consumers, that means the worth developments decrease over time.

The StockCharts SCTR rankings are based mostly on a simplistic worth momentum mannequin. Principally, the stronger the development, as outlined on three totally different time frames, the upper the SCTR. As I overview the highest ten massive cap shares based mostly on their SCTR rankings, I am struck by the constant uptrends of shares very a lot in an accumulation part.

Listed below are the top-ten ranked massive cap shares based mostly on their SCTR scores, together with feedback for every. Notice three constant options: larger highs and better lows, sturdy momentum traits and enhancing relative power!

1. Petrobras (PBR/A)

2. Petrobras (PBR)

These first two are totally different share lessons of the identical Brazilian oil firm, Petrobras. It is arduous to think about a chart like this exists in a yr when the main fairness averages are in constant downtrends!

Notice the current breakout to new highs after a pullback to the 50-day transferring common, which is a basic bullish sample. 

3. Texas Pacific Land Belief (TPL)

A uncommon identify that has doubled since January, TPL simply broke above the $2000 degree for a brand new all-time excessive. Discover how the RSI has remained above 40 on current pullbacks, which is frequent in bull phases.

4. HF Sinclair Company (DINO)

Now this one has a cup-and-handle look to it, with a rounded consolidation part from the June peak into late August, adopted by a shallower pullback in September. The current break to new highs completes the sample and suggests additional upside potential.

5. Schlumberger (SLB)

SLB pulled again with the remainder of vitality in June, however the larger low in October set the stage for a profitable retest of the June excessive. The inventory is now overbought with an RSI over 70, however that’s not at all times a foul factor! Try the RSI in January.

6. Aspen Know-how (AZPN)

What? A know-how inventory really made it into the highest ten?!? AZPN has been fairly an outlier in its sector, up 67% year-to-date whereas the XLK is down about 28%. Right here, we discover a very constant uptrend of upper highs and better lows. When the worth is above two upward-sloping transferring averages, the development is powerful.

7. ConocoPhillips (COP)

COP has a fair higher cup-and-handle sample than DINO, with a clearly outlined “rim” to the cup and a sound breakout above resistance in early October. Considerably weaker momentum because the overbought situations in August, which can be one thing to observe.

8. First Photo voltaic (FSLR)

Now we go from “previous vitality” to “new vitality” with a leap to the photo voltaic shares. That is an intriguing chart for a lot of causes. Look how FSLR examined worth assist round 60-65 quite a few occasions, earlier than gapping larger in July and by no means wanting again.

The value broke above the 2021 excessive in late August and has now pulled again to the breakout degree round $120. Can FSLR maintain this key assist degree?

9. Devon Power (DVN)

DVN has been a favourite identify in 2022, notably within the first half of the yr, when it was usually within the SCTR high ten. Together with the remainder of the vitality house, we’re seeing renewed upside stress and a retest of all-time highs. Does this development proceed to a lot larger highs? I’d suspect the reply is more than likely sure.

10. Hess Corp (HES)

And we might have saved the most effective for final. HES has been in a basing sample for the final 4 months and, simply this week, made a decisive transfer above the $130 degree. And the relative power exhibits that this has been a constant long-term outperformer.

So what’s according to all of those charts? They’re within the accumulation part. They’re displaying proof that consumers are pushing costs larger as resistance ranges are met and eclipsed.

Whereas this spherical is dominated by vitality shares, that’s actually not at all times the case.  However in case you often overview the top-ranked SCTR shares, you will see that that, whatever the broader market atmosphere, some shares someplace shall be within the accumulation part.

As Paul Montgomery as soon as stated, “Probably the most bullish factor the market can do is go up.”

Another factor… My newest YouTube video solutions a current query, “Are you able to talk about the position of time within the formation of technical patterns?” Test it out:



P.S. Able to improve your funding course of? Try my YouTube channel!

David Keller, CMT

Chief Market Strategist

Disclaimer: This weblog is for instructional functions solely and shouldn’t be construed as monetary recommendation. The concepts and methods ought to by no means be used with out first assessing your individual private and monetary scenario, or with out consulting a monetary skilled.

The creator doesn’t have a place in talked about securities on the time of publication.   Any opinions expressed herein are solely these of the creator, and don’t in any manner symbolize the views or opinions of some other individual or entity.

David Keller

Concerning the creator:
David Keller, CMT is Chief Market Strategist at, the place he helps buyers decrease behavioral biases by way of technical evaluation. He’s a frequent host on StockCharts TV, and he relates mindfulness methods to investor resolution making in his weblog, The Conscious Investor.

David can also be President and Chief Strategist at Sierra Alpha Analysis LLC, a boutique funding analysis agency centered on managing threat by way of market consciousness. He combines the strengths of technical evaluation, behavioral finance, and information visualization to establish funding alternatives and enrich relationships between advisors and shoppers.
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