Telltale Signs of Stocks Headed Higher

06/11/2013 9:00 am EST

Focus: MARKETS

Greg Capra

Co-Founder, MasterTrader.com

Veteran trader Greg Capra of Pristine Capital Holdings, Inc. shares the criteria he uses to identify stocks that are likely to move higher.

When scanning for stocks that are likely to continue to move in one direction overall, I want those stocks to have a few criteria in alignment. I want the move up to have already started, but not that long ago. I want multiple time frames in alignment. I want the sector that the stocks are in to be in favor with institutions. I also want—and this is important—there to be a VOID of overhead resistance.

Here are two stocks that meet all those criteria and are going higher.

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The above stocks, Prudential Financial (PRU) and CME Group (CME) meet all of my criteria to move higher. The daily time frames have clearly established their uptrends and are well on their way. The monthly time frames have just moved above long-term resistance. The financial sector is a favorite of many analysts featured in the media. Lastly, there is a clear “tradable void” above for prices to continue the move higher that has just started.

These two stocks are going higher based on the criteria I've defined.

By Greg Capra, President & CEO, Pristine Capital Holdings, Inc.

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