Momentum Stocks

Momentum stocks (or stocks in play) are the stocks with a strong upward momentum. There are broadly several groups of momentum stocks:

  • Hot Sector Stocks (e.g., Solar stocks, EV stocks, Energy stocks, Pandemic stocks, Pot stocks, Semiconductor stocks, etc)
  • Hot Individual Stocks (e.g., stocks with extremely favorable fundamentals, stocks that are likely to be acquired, PEAD stocks, etc)

Momentum stocks share the following similarities:

  • The price is usually above key resistance levels that were formed over the last several months and even years
  • The daily candles are usually bigger than normal
  • The up days have big volume
  • The TTM Squeeze indicator shows strong upward momentum

Below are several examples of the momentum stocks:

JKS

TSLA

X

AMBA

JMIA

PLUG

COHU

BLNK

OCUL

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