Nasdaq Benchmark Drug Retailers IndexNasdaq Benchmark Drug Retailers Index (NQUSB5333) broke out of an ascending channel in early November. Since then, it bounced off the prior resistance line of the channel surpassing the 100% level of the Fibonacci Extension tool. It has been pulling back off the recent highs & I have noted two possible Extension retracement levels with the dotted red line. I am still waiting to see where this pullback ends but this industry seems like a good place to continue looking for trade ideas.
Within this industry, I like the charts for WD-40 (WDFC) & Energizer (ENR).
WDFC had an earnings gap up in early July & continued to ride an ascending channel since then. Even a gap down on the market open following an earnings announcement & dividend payment in mid-October saw the stock regain everything lost on the open, bringing the stock back within the channel by the close of the market that day. November 25th saw the stock breakout of this ascending channel & has maintained that level over the last few trading days. I have a potential price target of $197.50 at the moment.
ENR broke out of a symmetrical triangle intermediate pattern which then saw the price find support along a previous resistance level. I would wait for longer consolidation, or another pullback before entering this particular stock.
