The S&P 500 rose 0.6% on Monday. The Nasdaq jumped 1.05%, retracing just 50 days.
NVDA stock rose 7.1% to 437.53, reclaiming the 50-day line after falling below that key level last week. Morgan Stanley said on Monday that this is the right time to buy Nvidia stock. Investors can use the breakout of the short-term downtrend, which roughly coincides with the 21-day line, as an early entry. But Nvidia’s dividend is due on August 23rd.
Nvidia stock is running IBD Leaderboard.
MU jumped 6.1% to 68.25, bouncing back above the 50-day line. The memory chip giant has a handle on the odd-looking double-bottom base, offering 72.34 buy points. An entry could be from a downtrend break of Micron’s stock handle.
STLD stock jumped 5.2% to 107.65, moving back above the 50-day and 200-day lines. Investors can see this as a strong entry into Steel Dynamics with a deep five-month consolidation with a buy point of 136.46. Or they could see it as a trend line break within a six-week flat base within this larger consolidation. The flat base buy point is 111.71.
STLD stock rose after US Steel (X) said it was considering strategic alternatives after receiving several unsolicited bids, including a rejected one from a competitor Cleveland Cliffs (CLF). Diversified industrial company Esmark Monday afternoon offered $35 a share in the much larger US Steel, according to reports Monday afternoon. US Steel rose 37%, hitting a 15-month high on the day. CLF stock jumped 8.8%. Nucor (nue), another US steelmaker, rose 3.3%.
TDY jumped 5% to 402.50, regaining the 50-day line but still below the 200-day mark. Teledyne stock is attempting to break a choppy four-month downtrend. Goldman Sachs upgraded the industrial conglomerate to buy, raising its price target to 495 from 423.
MPWR stock rose 4.5% to 524.66, moving towards the 50-day line after hitting the two-month intraday high. A decisive retracement of the 50-day line would also involve a breakout of the chipmaker’s trend line. These would present multiple reasons for early entry as congenial stocks fuel the emerging consolidation.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
You may also like:
Why the IBD tool simplifies your search for the best stocks
Catch the next winning stocks with MarketSmith
Do you want to get quick profits and avoid big losses? Try SwingTrader
Best growth stocks to buy and monitor
IBD Digital: Unlock IBD blue-chip stock listings, tools and analytics today
It’s time to market with IBD’s ETF Market Strategy