Investment Alert: Buy at breakout points described below.
Disclaimer: Investment Alerts have a medium to long-term time horizon. These do not constitute financial advice and you should contact a financial advisor before deciding whether it is appropriate for your individual circumstances.
We’re switching up today’s alert to highlight 3 charts that have the potential to break higher over the next 30 days.
MongoDB Bull Flag
The first company is MongoDB (MDB) that has grown like a weed over the past 5 years. Top line growth for each fiscal year has been nothing short of scintillating:
- 2019: 60.8%
- 2020: 57.9%
- 2021: 40.0%
- 2022: 48.0%
- 2023: 47.0%
Earlier this month the stock had a monstrous move higher from under $300 per share to around $380 per share. Since then it has been consolidating and now a bull flag pattern has formed.
A breakout above $385 per share would suggest a continuation of the bullish move is on the cards and likely a bull run above $400 per share.
Another stock showing signs of a bullish run continuing is Twilio. Like MongoDB, the rocky economic and market environment over the past five years hasn’t acted as much of a drag on growth, which has been highly impressive.
- 2018: 62.9%
- 2019: 74.5%
- 2020: 55.3%
- 2021: 61.3%
- 2022: 34.6%
Yes, the comparably lower rate of growth in 2022 was punished by the market, which triggered a selloff to the low $40s, but a recent share price surge has returned the stock back to the high $60s where it has also started to form a bullish flag.
A breakout above $69 per share will signal that the stock is ready to continue its run higher.
Last on the list is Upstart. It has run from around $12 per share to $35 per share in almost a straight line so this is a much more risky play as no real consolidation has taken place.
A stock with this much momentum behind it, however, is hard to bet against and the recent pullback to the rising support line offers a rare chance over the past month to “buy a dip”.
A break below support would signal it’s time to exit and given how steep the ascent, the odds are a pullback could be violent too if that support line is broken. Until then, the trend is higher.