Microsoft stock, Visa stock, Mastercard stock, Intuitive Surgical stock and Cornerstone OnDemand are top stocks all moving toward buy points with the same unusual chart pattern. Microsoft (MSFT) and Visa (V), both Dow Jones stocks, are building the right side of consolidations next to failed breakouts from double-bottom bases. So are Visa archrival Mastercard (MA), Intuitive Surgical (ISRG) and Cornerstone (CSOD) These odd-looking charts are courtesy of the stock market correction and 2019 stock market rally. Follow the stock market, because that’s what top stocks do.
Microsoft, Visa, Mastercard, Cornerstone, Intuitive Surgical Stock Analysis
All five top stocks formed double-bottom bases starting from early October, just as the stock market correction got underway. Microsoft stock and Visa stock cleared buy points on Dec. 3, but closed just below the entries. So did Cornerstone stock. Mastercard stock and Intuitive Surgical stock closed in buy zones on Dec. 3. But all four stocks began to reverse lower, soon plunging to invalidate their buy points. All five stocks essentially bottomed on Dec. 24, though Microsoft stock technically dipped to a new low on Dec. 26 before rallying that day.
All four stocks have rebounded sufficiently to have proper consolidations, with buy points just above their Dec. 3 peaks.
Visa stock has reclaimed its 50-day and 200-day moving averages, and is now 5% below its 145.82 entry. The payments giant is on the IBD 50 stock list.
Microsoft stock dipped back below its 200-day line on Thursday, and is also still below its 50-day. It’s 9% below a 113.52 entry.
Mastercard stock rose above its 50-day line last week, closing just below its 200-day last week. Mastercard stock, also on the IBD 50, is about 7% off its 210.01 buy point.
Intuitive Surgical stock surged 7% Wednesday and for the week as the robot surgical system maker reported upbeat preliminary figures. Shares, now above their 50-day and 200-day lines, are 8% below a 549.08 entry.
Cornerstone stock jumped above its 200-day line on Jan. 4, then claimed its 50-day on Monday, Jan. 7. Shares continued to move higher. Cornerstone stock is 4% off a 55.54 entry.
Follow The Stock Market Because Top Stocks Do
Why do these five stocks mimic each other so closely? Because they’re following the stock market. If you look at a chart of the Nasdaq, you can see a W-shaped pattern from mid-October to Dec. 3. Shares then suddenly crashed down until Dec. 24. Since then, there’s been a promising stock market rally, providing a tailwind for Visa stock and the others.
Even top stocks will tend to follow the broader market. That’s why it’s important to follow the major averages and leading stocks and why you should only make buys in a confirmed stock market rally.
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