As the second half of the year kicks off, Tesla, Uber Technologies and Nvidia are among 16 names that have secured a spot on IBD Leaderboard. Among those 16 names, Nvidia stock, ASML, Rambus, MongoDB and On Holding have etched their names on the subset of Leaders Near A Buy Point.
Additionally, United Airlines is among six companies that have landed a spot on the watchlist. Chipotle Mexican Grill, Churchill Downs, ELF Beauty, Penumbra and Wingstop join UAL stock.
The market indexes continue to show strength, prompting last week's increase in IBD's recommended market exposure level to 80%-100%. While that points to a strong environment, investors should stick to sound rules on how to buy stocks and when to sell stocks.
Nvidia Stock Highlights Importance Of Trendlines
Chart patterns, like a cup with handle, flat base and double bottom, identify optimal buy points that have lower risk and a higher likelihood of success. But as Nvidia stock, ASML, ONON stock and Tesla stock have all shown recently, trendlines can offer investors alternative and earlier entries.
Tesla flashed an earlier chance to pick up shares than a conventional buy point by clearing a trendline drawn from its February peak. Since then, Tesla stock made a solid climb, gapping up on Monday to kick off a short holiday week. Note how the 10-week moving average shot above the 40-week line not long after it cleared that trendline.
After Nvidia stock found support at its 21-day exponential moving average, the computer graphics, artificial intelligence and self-driving car technology powerhouse crossed above a narrow trendline near 418.
Leaderboard raised exposure to Nvidia by a quarter as it crossed the trendline. On a weekly chart, you can see how Nvidia stock has successfully digested big gains multiple times. The gains came in clusters of tight trading since it launched a big breakout in January.
ASML stock, ONON and several other IBD Leaderboard members have also crafted trendlines, giving investors additional ways to tap renewed strength in the indexes.
Chipotle, UAL Stock Spice Up Watchlist
While Tesla, Uber and others have climbed out of buy range, Chipotle and United Airlines continue to serve up a fresh base and buy zone, respectively.
After seeing its March breakout get grounded, UAL stock bounced back into buy range after clearing a 54.05 buy point on June 27. Despite some subsequent turbulence, the airline has shown resilience and remains in the buy zone.
Like Nvidia stock, Chipotle has consolidated recent big gains by moving sideways in tight, healthy trading. CMG stock has now served up a 2,139.88 buy point in a second-stage flat base.
Wingstop and Churchill Downs, which was featured in this column on June 12, are both working on new chart patterns.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
