The Cycles Research scan of the S&P 100 seeks stocks that are superior in terms of both relative strength and price cycles. Here are a pair of stocks that stand out. Both stocks are large-cap and neither are in the technology sector.
Walt Disney
DIS
is one of the few large-cap stocks that are not overbought on a monthly basis. Note the blue momentum line in the monthly strip. Not only is it not too stretched as other stocks are, but it also shows higher lows in momentum, a constructive development. The monthly price reveals a breakout from a falling wedge formation. The relative strength shows a reversal of a three-year downtrend. The weekly relative strength is tracing out a base. The stock could reach $150 by yearend. The monthly cycle rises through 2024, a confirmation of the positive technical picture.
Disney Daily, Weekly, Monthly
Disney Monthly Histogram
The financial sector has risen to number four in the relative strength sector rankings. Within this sector, American Express
AXP
stands out. In the weekly and in the monthly strips, we can see that price has broken out of rectangles. These formations are the most reliable technical configurations. The breakouts suggest a price over $250 later in 2024. Relative strength has been approaching its old highs set in 2023 and in 2022.
The monthly histogram tells us that April has been the strongest month. Over the last 45 years, AXP shares have risen 67% of the time for a 4.4% average gain. Further gains are likely as this sector gains strength.
American Express Daily, Weekly, Monthly
American Express Monthly Histogram
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