If you go through a long enough list, at some point you will find some names worthy of buying from a technical perspective.
Yesterday, I highlighted five stocks not to buy from the first half of Morgan Stanley's list of Brexit bargain stocks. Today, I'm highlighting three stocks that do look attractive from the second half of the list.
Let's take a closer look at the stock charts of these three stocks.
In this daily chart of Verisk Analytics (VRSK) - Get Report , above, we can see that trading has been pretty volatile the past twelve months. Very roughly speaking, dips to $70 and below have been bought, and rallies over $80 have been sold. Right now, prices are below the 50-day moving average but above the 200-day average line. The on-balance-volume, or OBV, line is steady and there are no important divergences from the momentum study.
In this weekly chart of VRSK, above, we can see that prices are above the rising 40-week moving average line. The OBV line is pointed in a positive direction and the MACD oscillator is above the zero line. While the MACD oscillator is in a bullish position now, the two lines of the oscillator could cross to a liquidate longs sell signal.
In this daily chart of Proofpoint (PFPT) - Get Report , above, we can see that the stock has rallied nicely from its February low. Prices are just below the 50-day and 200-day moving averages, but this might be a temporary pullback. The OBV line is positive and tells us that buyers of PFPT have been aggressive with more volume traded on days when PFPT has closed higher. In the bottom panel, we see no bearish divergences to suggest there could be more price weakness ahead.
In this three year weekly chart of PFPT, above, we can see that prices are above the flat 40-week moving average line. The OBV line turned up with the price action in February to tell us that buyers were being more aggressive. Recently the OBV line has turned sideways suggesting more two-way trading. The MACD oscillator gave a cover shorts buy signal in early April and is moving above the zero line for an outright go long signal.
T-Mobile (TMUS) - Get Report is up from its February low, which is easy to see in this daily chart above. Prices are dipping a little recently, and TMUS is below its 50-day moving average line but still above the 200-day. The OBV line on this timeframe is positive, and we don't see any bearish divergences with momentum. There seems to be good chart for TMUS at $40.
This three-year weekly chart of TMUS is actually pretty positive. Prices are above the rising 40-week moving average line. The OBV line on this timeframe could be considered positive for the past three years -- no easy feat in the kind of markets we have seen the past few years. The MACD is bullishly moving higher, above the zero line.