GE stock sits in buy range from its latest breakout. Amazon stock is poised to break out. Li Auto stock is flashing an early entry. Novo Nordisk stock shows a new flat base after rebounding from a key level. MongoDB stock continues to consolidate and may offer a potential handle entry.
Relative Strength Is Key
All these top stocks, except China’s Li Auto, have relative strength lines at or near consolidation and 52-week highs. Li stock shows an improving RS line, however.
GE stock and AMZN stock appear on the MarketSmith RS Line Blue Dot screen, which lists stocks in bases or breaking out with RS lines at new highs. The MarketSmith charts will mark such stocks with a blue dot at the end of their RS lines.
The powerful stock market rebound in November has lifted these and other top stocks near buy points.
The RS line for GE stock on the weekly MarketSmith chart showed a blue dot as it broke out Thursday, a positive sign.
The one downside is General Electric has rallied in the past few weeks on below-average volume.
The 95 Relative Strength Rating means that GE stock has outperformed 95% of all stocks in IBD’s database over the past 12 months.
Earnings are surging, while revenue growth has accelerated for the last four quarters.
In the past week, GE announced a massive new jet-engine order and also announced boards of directors for the upcoming GE Vernova and GE Aerospace units.
The news helped to push GE stock to its highest level since the diversified conglomerate signaled its big breakup six years ago.
Shares of the e-commerce giant gained 1.1% to 145.18 for the week. Amazon stock topped a buy point of 145.86 on Tuesday then fell back slightly. With the pullback, AMZN stock seems to be forming a handle near the top of the consolidation.
The RS line for Amazon stock on the weekly MarketSmith chart also shows a blue dot as it hits highs. Doing so before a breakout is especially bullish.
AMZN stock carries a Composite Rating of 87, EPS Rating of 82 and RS Rating of 94.
The e-commerce leader announced Thursday it will begin selling cars online for the first time in 2024.
It will partner with Hyundai on this potentially game-changing move, with the South Korean carmaker using Amazon Web Services (AWS) for cloud services as part of the deal.
Amazon earnings surged 236% in Q3 vs. a year earlier. Revenue growth accelerated modestly for a second straight quarter, to 13%.
Li Auto Stock
U.S.-listed shares of the China EV startup rallied Friday, up 10.4% for the week. Li stock bounced back above a 40.14 early, low-handle entry, which it first cleared on Wednesday.
The RS line for Li Auto stock is trending higher, though still below the consolidation peak.
This top EV stock bears a Composite Rating of 98, EPS Rating of 81 and RS Rating of 97.
Li Auto began presales of its first pure electric vehicle, the high-end Mega minivan, on Nov. 17.
It recently reported record October EV sales and also gave strong guidance for November and December.
In addition, Li Auto reported third-quarter earnings well above views, its fourth profitable quarter in a row. Sales growth also accelerated for a fourth straight quarter.
The company’s revenue guidance suggested some margin pressure, amid intense China EV competition.
Novo Nordisk Stock
Shares of the Wegovy weight-loss drugmaker rebounded from a test of the 50-day moving average Thursday and extended their rally Friday, finishing with a 0.2% weekly gain to 101.39. Novo Nordisk stock now has a flat base on a weekly chart with a 104 buy point.
NVO stock arguably flashed an aggressive entry on Friday, clearing a short downtrend and topping the 100 level.
The RS line for NVO stock is near highs and not far from the consolidation peak.
The drugmaker stock carries a Composite Rating of 98, EPS Rating of 97 and RS Rating of 95.
IBD selected Novo Nordisk as its Stock of the Day Thursday. A study showed its weight-loss drug, Wegovy, cuts down on heart attacks and strokes.
Shares of the database software stock gained Friday, up 4.2% for the week. MongoDB stock recently cleared an early entry above the 50-day line. It continues to work on a traditional 439 buy point from a lengthy consolidation.
MongoDB may try to forge a handle, but it’s not giving up much ground. A pause would let the 50-day line start to catch up.
The rising RS line for MDB stock is almost back near the consolidation peak.
This top software stock bears a Composite Rating of 99, EPS Rating of 82 and RS Rating of 98.
Like Amazon stock, Datadog earns a spot on the prestigious IBD Leaderboard.
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