The stock markets are high on optimism again. Investors have an increasingly bullish outlook on the market while anticipating that the Federal Reserve may have ended its interest rate hikes. There have also been very positive Q3 corporate earnings from companies like Qualcomm, Starbucks, and Teleflex, which have helped boost the optimism. The positive outlook is further supported by a very positive U.S. nonfarm payroll productivity and positive developments in inflation.
This optimism propelled some stocks and pushed the market higher. Our 14-day RSI shows a lot of companies crossing the 50-point line and moving into bullish territory. Again, this is still not a buy signal, but it makes the case that these companies may be worth a look. Here are three top stocks with potential based on yesterday's bullish move.
Sportradar Group AG (SRAD)
Sportradar Group AG is a sports betting technology platform provider based in Switzerland. The company is considered the top business-to-business solutions provider in the sports betting industry. Its solutions offer integrated sports data, which enables its customers to operate efficiently and improve fan experience. Its software provides visualization functions, processing and extrapolation, risk management, and other platform services.
SRAD previously announced its partnership with BetMGM to expand its NBA optical tracking. The company also received approval as the official partner of Taiwan’s Sports Lottery. Sportsradar has recently been getting a lot of positive news, which includes being the top live-streaming service supplier for EGR’s B2B awards 2023.
Is this finally a reversal?
SRAD closed on a positive candle yesterday with significant volume marking the potential reversal from its downward trajectory. 14-day RSI showed price momentum has been waning after its long oversold and bullish divergence. Traders interested in SRAD can wait for a confirmed buy signal and follow through to take advantage of this buying opportunity.
Avis Budget Group, Inc. (CAR)
Avis Budget Group, Inc. is a car-sharing and rental vehicle company mainly operating in North America, South America, the Caribbean, and Central America. The company licenses its brand to third parties and runs its car-sharing business in the market. Avis offers a variety of vehicles, including luxury cars, light commercial vehicles, and specialty-use vehicles. Its most popular brands are Budget, Zipcar, and Avis.
CAR’s recent financials beat earnings estimates by analysts by 15.41% and experienced a 5% increase in rental days YoY. The company also announced a newly appointed EVP and Chief Transformation officer for next year, Izzy Martins, who will be taking the position, will start on January 1, 2024.
Should you buy when the market opens?
The company created a gap during the opening and closed positively with solid volume. Its 14-day RSI crossed the bullish zone, indicating that this may be a potential reversal. Traders looking to buy into CAR can observe how prices behave on the next candles to see if prices will follow through or close the gap first. The next few candlesticks will help determine if we have already confirmed the bottom or if there is an effect on the market’s optimism.
Cirrus Logic, Inc.(CRUS)
Cirrus Logic, Inc. manufactures high-precision mixed-signal processing solutions for various technology fields. The company supplies low-latency, low-power, and high-precision audio components in applications like virtual reality/augmented reality headsets, laptops, tablets, and smartphones. The company also offers boosted amplifiers, intelligent codecs, analog-to-digital converters, and haptics & sensing solutions. Its SoundClear is one of its flagship solutions that help differentiate its offerings in the market.
CRUS recently reported its financial quarter and stated that the company is on track with its financial performance. It delivered revenue numbers around the top end of its guidance. Ciruss also mentioned reaching new milestones in its next generation of products introduced next year.
Should you buy now?
CRUS is experiencing strong momentum and has been signaling that we have already reached its immediate low around the $65.00 zone. The 14-day RSI has crossed the bullish zone with solid volume. Based on the price direction, the next resistance is around the $74.00 area. Traders looking to trade CRUS can wait for a consolidation or retest of the low as confirmation.
Final Thoughts
RSI is one of the best ways to quickly find stocks that have crossed toward bullish territory and have been accelerating their momentum. However, there are other reasons for buying a stock. Proper due diligence is required when making buying decisions so you understand the risk for each trade. The indicator helps you look at the stock worth your time but can be your trade’s pitfall if you use it incorrectly.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
