Momentum Stocks Push Higher as Key Technical Buy Areas Trigger Ahead of the Holidays
Momentum Stocks Continue to Snap Back Into the Holidays
Another solid day for momentum stocks as the market continues to snap back following last Thursday’s reversal. With the holiday period approaching, conditions remain favorable for stocks to float higher on lighter volume, particularly as leading names continue to hold key technical levels.
We are already seeing this play out across several of my selections, many of which are now trading at or near new Technical Buy Areas (TBAs). Strength is broad, orderly, and supported by trend — exactly what you want to see heading into a seasonally constructive window.
TBA = Technical Buy Area
Nasdaq-100 ETF (QQQ): Holding the Line
Let’s begin with the broader market. The Nasdaq-100 ETF (QQQ) continues to hold above its rising 50-day moving average, currently near $613. As long as this level remains intact, the path of least resistance remains higher.
Holiday markets are often characterized by lighter participation, and when price holds above trend during these periods, it frequently leads to a slow grind higher rather than sharp reversals. For now, QQQ remains constructive and supportive of continued momentum exposure.
ProShares Ultra Silver ETF (AGQ): Trend Acceleration
AGQ continues to deliver outsized gains. From the $110 TBA, the ETF has now surged $43 higher. An earlier TBA near $59 produced an additional $28 gain.
Per my 10 Golden Rules, we reduced a portion last week into strength while maintaining a core position. Maximum stops are currently raised to $134, allowing participation while managing downside risk as price extends.
Meta Platforms (META): Stopped, But Not Broken
META is up $56 from the $605 TBA and recently reached the second TBA near $672 before pulling back and stopping out. This is normal behavior after a strong run.
Importantly, the structure remains intact. I would reconsider META on a decisive move back above $674, which would place the stock back in a position of technical strength.
First Solar (FSLR): Cup-With-Handle Resolution
FSLR is beginning to exit the handle portion of a weekly Cup-with-Handle pattern. The stock crossed its first buy area at $274 and then cleared the second level at $282 today.
From the TBA noted last night, FSLR ran $10 higher, confirming institutional demand and reinforcing the breakout attempt.
AppLovin (APP): Clean Lift From the Base
APP lifted cleanly from the $727 Cup-with-Handle TBA and continues to trend higher. Maximum stops are currently raised to $721 to protect gains while allowing room for normal consolidation.
Price remains well-supported by its rising moving averages, keeping the trend firmly intact.
Micron Technology (MU): Memory Momentum Continues
Micron gained $11 today from the $265 TBA noted last week. With demand for computer memory accelerating, the stock continues to trend higher within a well-defined rising channel.
As long as MU holds above trend support, the technical setup argues for further upside.
Goldman Sachs (GS): Breakout With Follow-Through
GS has now produced $40 in gains from the $842 TBA. We reduced a portion into strength while continuing to hold a core position.
Maximum stops are raised to $868, and on strong volume, the next TBA sits near $920. Financials remain one of the stronger areas of the market.
Hycroft Mining (HYMC): Explosive Move
HYMC exploded 48% higher in a single day, a stock I highlighted in the chat room just over a week ago. This kind of move underscores the importance of early positioning during base development phases.
It pays to stay engaged and selective when momentum begins to rotate into smaller, higher-beta names.
Eli Lilly (LLY): New Highs Ahead
LLY climbed $33 higher after being flagged for active trading last week. From the $982 TBA, the stock is now up $92.
The next TBA sits near $1,112, which would mark new highs. As long as LLY remains above trend support, the uptrend remains firmly in control.
Final Thoughts
With momentum stocks continuing to respond well to their respective Technical Buy Areas and the broader market holding key trend levels, the near-term outlook remains constructive.
As always, risk management comes first. Stops are being raised, partial profits taken where appropriate, and leadership continues to be respected. If the market maintains its footing into the holidays, there should be additional opportunities ahead.
Disclosure: This article is for informational and educational purposes only and is not financial advice. Always do your own research and consider speaking with a licensed financial professional.
