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…
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.
Editor, Chart Of The Day