Builders FirstSource Tops Its Own Records All Year

Yesterday, we looked at a Daily Price chart of Alphabet, Inc., and noted that the stock had been making a series of 52-Week Highs this month.

Today’s Chart of the Day is a Daily Price chart for Builders FirstSource, Inc. (NYSE: BLDR).

Builders FirstSource, Inc. manufactures and supplies building materials and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States.

The Daily Price chart below shows that BLDR has traded in a clear bullish pattern of higher highs and higher lows since last year.

Track the price chart from the lower left to the upper right…

BLDR Beats Its Own Record All Year

This bullish pattern indicates a continuous climb — put simply, it’s not stopping any time soon.

You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.

But it’s important to note that strong stock rallies also contain pullbacks along the way. Those pullbacks are a buying opportunity for the savvy investor.

Purchasing BLDR after a 3 to 5% price pullback has provided a good entry point for the stock this year, producing a healthy return.

We’ll keep watching BLDR as it tops its previous highs, and waiting for price pullbacks…

Now, we’d like to call attention to how a previous Chart of the Day stock has done.

On November 12th, we highlighted TopBuild Corp. (NYSE: BLD), noting that the stock had been trading in a bullish pattern since January.

If you happened to have purchased BLD shares on that day? You’d already be up 3.17%.

But… if you had purchased the right option contract, you would be up 23.66% in less than two weeks’ time!

That’s the power of options. You may have noticed that Chart of the Day doesn’t recommend specific options plays…

That’s what the PowerTrend Options service does. If you haven’t read about it yet, you can click here to check it out.

Best Regards,

Chuck Hughes
Editor, Chart Of The Day

Chuck Hughes

Written By Chuck Hughes

Before Chuck Hughes won 10 Trading Championships, he was an accomplished Air Force pilot. In fact, he credits his success as a stock and options trader to his disciplined upbringing and career. When he was deciding between a career in the Navy and a career in the Air Force, the Navy told him he’d only have a 33% chance of flying jets. The Air Force gave him 100%. He liked those odds better. 35 years ago, Chuck had a wife, a young daughter, a son on the way, and a huge mortgage to afford. He didn’t want to give up on his lifelong dream and stop flying for a major commercial airline. He knew he needed to supplement his income during the 15 days a month he wasn’t flying. So he used his experience in discipline and math, and his understanding of finance and the stock markets (which he’d always been interested in,) and opened a $4,600 trading account. He made over $460,000 in profits his first two years of trading, and he hasn’t looked back since. When he was diagnosed with Meniere’s disease 15 years later, which commonly leads to vertigo…He knew his career as a pilot wouldn’t last much longer with those odds. But he didn’t have to scurry to find another gig, or panic about how his family would eat… He’d spent the last 15 years perfecting his system and raking in cash. As an options trader, Chuck does not let his emotions get in the way of his trading strategy. He adheres to disciplined and methodical options and stock trades. Because he respects the options game so highly, and understands the true freedom that financial solvency can bring, Chuck was able to design and refine his system and win those 10 Trading Championships. Put simply, Chuck Hughes’ trading strategies work, and in all types of market conditions. They’ve worked throughout the bull, bear, and flat markets America has seen in the last 30 years. Chuck Hughes has spent that time building a reputation as one of the most trustworthy options traders in the industry. His publishing group Legacy Publishing LLC was one of the few trading groups on the planet to have correctly predicted and profited from the 2008 financial crash .As a published author 16 times over, a 10-time Trading Championship winner, and an options-trading teacher for 25 years, he’s learned to trade and teach without an ego.