AppLovin Gains 1,303%: The Hidden Power of SCTR Report | Don’t ignore this chart!

How do you find the next large-cap stock before it catches the public eye?

It’s tricky, but there are only two ways to spot so-called ‘hot stocks’ before they become a social sensation. One is to comb through financial reports and forum chats to find out what Wall Street insiders might be seeing before the general public does. Another way is to use various scans to trace the smart money before the news breaks.

Or you can do both.

(The latter, searching for stocks showing technical strength, is probably a daily task, as there are many tools that allow you to quickly search for stocks and all sectors of the market.)

Scan after closing on Tuesday

On Tuesday we performed an aftermarket scan in preparation for the next day’s trading session. Import StockCharts sample scan library at charts and tools Scan was performed from the menu. A new 52-week high We’ve categorized the symbols according to StockChartsTechnicalRank. (SCTR) score.

Figure 1. New 52-week high scan results. Sorting by SCTR score, AppLovin is at the top.Image source: StockCharts.com. For educational purposes.

AppLovin (APP), a mobile marketing technology company, broke the highest SCTR score and 52-week high. I realized that the SCTR Top 10 report, which is displayed in the SCTR Report Dashboard panel, also has an APP.

Figure 2. SCTR Report Top 10 List. APP has been on this list for a while, but its move to the top is worth noting.Image source: StockCharts.com. For educational purposes.

If you have been following SCTR reports from time to time, you may have noticed that APP has been dominating the top 10 list for quite some time. APP isn’t the hottest stock (perhaps by far), but it’s been buzzing with institutional and technology investors for quite some time. I’m curious to see what other scanning apps show.

Here’s what the symbol summary tool showed Tuesday afternoon:

Figure 3. Scanned list of symbol summaries with apps. Now it’s time to dive deeper.Image source: StockCharts.com. For educational purposes.

At the very least, the appearance of the APP on multiple scans tells me it’s time to take a deeper top-down dive into the stock. Let’s start with the weekly chart. You can see the big picture price history of the APP.

Figure 4. Weekly chart of the app. Stock prices showed a parabolic rise.Chart source: StockCharts.com. For educational purposes.

This is an incredible jump of 1,303% (see percentage line measurement in chart). And two questions need to be asked: Were there any early signs of getting into the stock when APP was only at $30? Is it now just a FOMO deal, or is there still room for growth?

Starting with the first question, the earliest technical indication was in May 2023 (see the blue dotted vertical line). This time, two things matched (green circles highlight each event).

• Chaikin Fund Flow (CMF) breaks above the zero line, indicating that buyers have taken control of the market.
• The SCTR line soared to 99, well above the bullish 90 line.

At this point, you may be wondering if there is still room for APP valuations to rise, or if this is now just a FOMO deal. Here we will move to the daily chart. Please refer to the APP for details.

Figure 5. App daily chart. There are several levels of support for the upcoming withdrawal.Chart source: StockCharts.com. For educational purposes.

APP congestion gap It followed an outstanding earnings report. Difference Between CMF and CMF balance volume The (OBV) line shows a potential decline in institutional buying (denoted by CMF) relative to retail FOMO (using OBV as a proxy). that relative strength index (RSI) is clearly in overbought territory, but the price action in APP shows how RSI can remain at extreme levels for extended periods of time.

On the daily chart, three indicators show potential convergence at support levels. Ichimoku Cloud Provides dynamic support ranges that change with price action. quadrant linesThis is especially true in the third quadrant, just below the 50% retracement. The second and third quadrants typically represent bullish levels during a downtrend. finally, Bollinger BandThe middle band also belongs to the third quadrant.

If APP starts to trend downward and the stock price is bullish, watch these levels closely. Guided by how the price reacts at this point, you can make more informed decisions about when to take action.

at the end

The steps to uncovering potential breakout stocks like AppLovin highlight the importance of analysis using differentiated tools to uncover hidden opportunities. From initial scans to identifying technical strengths, through deep analysis using SCTR rankings and symbol summary insights, the journey of discovery follows systematic steps. Whether you’re trying to spot the next big move or planning an entry point during a downtrend, the takeaway here is clear. Consistent, multi-layered scanning and analysis is the key to finding market gems early.

disclaimer: This blog is written for educational purposes only and should not be construed as financial advice. You should not use any of our ideas and strategies without first evaluating your personal and financial situation or consulting a financial professional.