$FOUR is starting to soar!FOUR
This is Scott with your Chart of the Day. I want to bring your attention to a software that is doing well in a market where it is hard to find good software stocks. This is Shift4 Payments ( NYSE: FOUR ).
As you can see FOUR ( NYSE: FOUR ) is in somewhat of an uptrend. It is above all the major moving averages. We have a short little base of consolidation that it has been in for most of December here. We just broke above that base today and did it on higher-than-average volume.
Now, in a market where buying strength is not really being rewarded, I would say this stock is a bit extended right now. So I would want to see this stock pull back to either the 8-day or the 21-day exponential period moving average and really find buyers at those levels. Because then at least you are not buying high.
Buying high in this market is a good way to say bye-bye to your money, as a lot of us have found who enjoyed buying breakouts in 2020 and 2021. It’s hard to buy breakouts in 2022 and we don’t know what 2023 is going to bring. And so what I have found is buying within a base like this, close to major moving averages, has been much more rewarding than buying high.
So I would look for FOUR ( NYSE: FOUR ) to come back to these moving averages here as a potential entry. If I flip to a weekly chart you can see how it is above this 100-week moving average. The stock hasn’t been trading for very many years, ii only launched in the middle of 2020, and it was pretty much a straight shot to the moon, much like everything else in 2020.
So this is definitely one that I would keep an eye on even if you are not looking at it tomorrow since it is the last trading day of the year. Keep an eye on this into early 2023 because this stock is outperforming now and it could outperform into next year.