Ubiquiti (UI, daily) raced by a buy point and buy zone Friday. Good-looking cup-with-handle and strong fundamentals.
Video Transcript
[MUSIC PLAYING]– Speaking of breakouts, we have to look at Ubiquiti, ticker UI. An explosive move today, up 14%, breaking out of this cup-with-handle base that’s been on our radar all week. Just really strengthened throughout the day. We got that RS blue dot just surging into new highs here. A stock that has a lot to like about it.
– Yeah, this was a good looking chart, which is especially impressive given how volatile this market. The handle turned out perfectly because it shook out a little bit coming down below the 21-day line, but finding support wasn’t that deep. So the relative strength line hitting a new high, the earnings growth is accelerating, sales growth is accelerating.
Strong group. It just ticks off all sorts of boxes. This was added to leaderboard. I personally had this briefly. I had to take it off, [INAUDIBLE] IT was like, this is one that you could have bought. There was actually a time, if you look intraday, there was actually a decent amount of time when this was in buy range.
So now you can’t touch it, but there was a good hour or so. It gapped up and then just steadily moved higher. It never would have shaken anybody out. Anybody buying in this area, it was a safe situation. And this volume, wow. That is really impressive volume. Seems low. But with that dollar price, it trades enough to be– it’s fairly liquid in that regard.
– Exactly. And you mentioned the window in which it was actionable. I think that makes such a good point about why we like to prepare and have watch lists and screen stocks and have them on our radar so we’re not caught off guard, so we’re not seeing this halfway through the day when it’s already up a double-digit percentage, and we can buy it at the right time. We’re being very selective with breakouts, but this looks like a good one to have capitalized on.
– Yeah. That is the absolute great reason for watchlist. You’re absolutely right.
