Celebrate Them Staying Up There

Traders have a tendency to shun names which we feel we have "missed," be it a sizable earnings rally or a rally seemingly out of nowhere. However, to succumb to those short-term emotions if often a mistake in terms of unnecessarily missing out on future opportunities. 

Specifically, these stocks are often tipping their hands that they now have serious buying interest, likely of the institutional variety. Hence, they almost always offer secondary entry points (albeit rather briefly at times, a sign of uniquely strong stock which "play hard to get") for patient traders. 

Case in point: Both BlackBerry and Lululemon, even as they are completely different firms, sectors, and long-term charts, are flagging rather tightly after recent earnings success. BB and LULU look to be offering up fresh entries to traders who may have missed the recent moves but have not shunned the names as lost opportunities. 

What we want to see now is renewed strength not necessary back over last week's highs (that may be waiting too much) but instead a sense of vigor with buying strength at least over yesterday's highs to probe a long. 

As you may know, the high, tight bull flag pattern (in light blue on both daily charts, below) not only looks like an actual flying flag but also illustrates that both stocks are becoming acclimated to higher prices in lieu of immediate rejection. The stocks, essentially, are "staying up there" and perhaps preparing for higher prices yet as sellers are unable to make much headway, if any.