The Santa Claus rally that was expected to occur at the end of the year has not happened, causing uncertainty among investors. The stock market has experienced a pullback, with some leading stocks losing their recent gains.
However, there are six stocks from the IBD 50 list that have shown resilience and are finding support at the 10-week moving average, presenting a potential buying opportunity. These stocks are being closely monitored as they approach this critical technical indicator, which often signals a rebound.
One of these stocks is Natera (NTRA), a company specializing in prenatal genetic testing and diagnostic services. Natera has reported consistent sales growth and has gained the confidence of institutional investors.
Another stock to watch is Aris Water Solutions (ARIS), which has also shown positive momentum and is within the buying range off its 10-week line.
In the travel sector, MakeMyTrip (MMYT) is rebounding from the 10-week line and remains within the buy range.
In the software sector, Vertex (VERX) and Shift4 (FOUR) are hovering near their respective buy ranges from support at the 10-week line.
The current market sentiment reflects caution among investors, leading to a more selective investment strategy focused on stocks finding support at key technical levels. Institutional investors have shown interest in these stocks, indicating confidence in their long-term potential.
As the year comes to a close, investors are closely watching these resilient stocks and considering the interplay between market risk and potential rewards in shaping their investment strategies for 2024.