3 Bullish Setups for the Week Ahead

Price Action is Truth

On Wall Street, the single, most reliable truth teller is the price and volume action in stocks. Though headlines can be misleading, economic indicators lag, and fundamentals aren’t always priced in right away, price and volume action tells the truth. It represents real money at risk and supply and demand across the stock market. My recent article dissects why the market has been suppressed and why it is ready to explode to the upside.

Bullish Setups Proliferate

Similar to working out or dieting, the secret to success in trading is consistency. The best investors that I know screen for stocks e at least once a week. By consistently screening for stocks each week, investors can get a valuable grasp on when there is a subtle change in the number of bullish setups.

What Do you Mean by “Setups”?

Each week, I scan thousands of stocks to search for which stocks are basing within uptrends. Since leading stocks tend to uptrend in a stair-step fashion, it is best to buy after these consolidations instead of chasing them extended. The best bullish set ups are found in fundamentally sound, uptrending stocks with price consolidations of five weeks or more. Additionally, relatively new bullish catalyst is another positive.

3 Stock Setups to Watch

SanDisk: Benefiting From the AI Memory Bottleneck

SanDisk (SNDK) is one of the best-performing stocks so far in the AI revolution. SanDisk benefits from surging demand for its high-capacity flash storage products that are used in cloud and AI deployments. The company is already sold out of its memory and NAND flash production through 2026, and Zacks Consensus Analyst Estimates expect its robust growth trajectory to persist into 2027.

After a massive run, shares finally formed a multi-month base structure. The stock is currently setup in a picture-perfect monthly bull flag pattern.

Coinbase: SEC Provides Regulatory Relief

Earlier this month, Coinbase (COIN) shares dropped after the long-awaited “CLARITY Act” stalled in the U.S. Senate. However, shares bounced back Friday on massive volume turnover after the U.S. Securities and Exchange Commission (SEC) circumvented the Senate and approved limited on-chain trading of tokenized stocks. Additionally, Coinbase is reportedly in talks with the Treasury and Commerce Departments to advance the Strategic Bitcoin Reserve. On Friday, Coinbase shares recaptured the 200-day moving average as volume swelled to 150% above the 50-day norm – signaling renewed demand and a bullish trend change.

Moderna: Blockbuster Potential

In mid-August, Moderna (MRNA) shares exploded 176% in a single day on massive volume after Phase 3 data showed its mRNA-based cancer therapy significantly cuts melanoma recurrence. Because more than 2% of Americans have melanoma, this groundbreaking drug has blockbuster potential due to its massive total addressable market. Moderna shares are setup in a powerful high-tight flag pattern. Despite the massive post-approval move, the stock has held its ground and moved sideways on low volume – a sign that bulls are in no rush to part with shares.

Bottom Line

As the bulls reassert their power, leading stocks like SanDisk, Coinbase, and Moderna are setting up in constructive base structures.

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This article originally published on Zacks Investment Research (zacks.com).

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