Why Meta Platforms, Boeing, Canopy Growth Look Set For Continuation And How To Trade The Move

Boeing Co BA, Canopy Growth Corp CGC and Meta Platforms Inc FB are all trading higher in strong uptrends. An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate the bulls are in control while the intermittent higher lows indicate consolidation periods. Traders can use moving averages to help identify an uptrend with rising lower frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend and rising longer-term moving averages (such as the 200-day simple moving average) indicating a long-term uptrend.

A stock often signals when the higher high is in by printing a reversal candlestick such as a doji, bearish engulfing or hanging man candlestick. Likewise, the higher low could be signaled when a doji, morning star or hammer candlestick is printed. Moreover, the higher highs and higher lows often take place at resistance and support levels.

In an uptrend the "trend is your friend" until it’s not and in an uptrend there are ways for both bullish and bearish traders to participate in the stock:

• Bullish traders who are already holding a position in a stock can feel confident the uptrend will continue unless the stock makes a lower low. Traders looking to take a position in stock trading in an uptrend can usually find the safest entry on the higher low.
• Bearish traders can enter the trade on the higher high and exit on the pullback. These traders can also enter when the uptrend breaks and the stock makes a lower low indicating a reversal into a downtrend may be in the cards.

See Also: Meta-stasis: Tech Giant’s Reach Grows — Where Is This Headed?

The Boeing Chart: Boeing gapped up 2.7% higher on Monday and made a higher high above the Nov. 8 high of $226.99. The stock has been trading in an uptrend since reaching an Oct. 28 low of $204.60. Boeing’s last higher low was printed on Nov. 10 at the $217.27 mark and although the stock will need to eventually print another higher low it has an almost 6% range to do so without negating the uptrend. 

The Canopy Growth Chart: Canopy Growth gapped up slightly on Monday but immediately fell down to fill the gap, which may give bulls more confidence going forward because gaps on charts fill about 90% of the time. Canopy Growth has been trading in an uptrend since reaching a low of $11.31 on Nov. 5 and on Friday printed a higher high above the Nov. 10 high of $14.33. 

The Meta Platforms Chart: On Monday, Meta Platforms created another higher high in the uptrend Benzinga called out Nov. 12 by trading above the $346.79 high made on Nov. 5. The stock has now regained a key support level at $349.18 although Meta Platforms may fall below the level when it prints its next higher low above $325.51.  

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Photo: Hans Eiskonen via Unsplash