Facebook, Electronic Arts, Workday, Ferrari Have Etched ‘Super’ Bullish Pattern: S&P 500 Futures | Stock News & Stock Market Analysis

Futures for the S&P 500 index, Nasdaq 100 and Dow industrials fell slightly Sunday evening. Facebook (FB), Electronic Arts (EA), Workday (WDAY), Ferrari (RACE) and Maxim Integrated Products (MXIM) all start the new week in flat bases.

Most are highly rated. Facebook and Ferrari boast best-possible 99 Composite Ratings, meaning they outperform 99% of all stocks based on a variety of fundamental and technical factors. Electronic Arts has a Composite Rating of 98. Workday is at a strong 93 CR while Maxim Integrated is at a decent 83.

Futures for  the S&P 500 index and Dow industrials slipped 0.1% vs. fair value. Nasdaq 100 futures fell a fraction.

The S&P 500 index, Nasdaq composite and Dow industrials closed last week at or near record highs.

XAutoplay: On | OffA flat base must be at least five weeks in length, but can be much longer. Within the base, the decline from the stock’s high to low usually ranges within 10% to 15%. That minimal correction is typically a sign of strength, showing that the stock has resisted a large pullback.

Facebook

Facebook has been in a flat base since July 27, when the Nasdaq hit a short-term peak. The social networking giant traded tightly for several weeks. On Sept. 25, Facebook tumbled through its 50-day moving average, as many big-name techs were hit hard. That acted as a shakeout for weak holders. Shares bounced back, moving over its 50-day line by the end of that week. Facebook closed Friday at 172.23, about 2% below its 175.59 buy point.


IBD’S TAKE: Flat bases, which require a minimum of five weeks, have been especially common in recent months. Learn more about this super growth stock pattern.


Electronic Arts

Electronic Arts broke out on July 26 from a flat base with a 116.14 entry. Since then EA has largely moved sideways, just above or below the buy point. The video game maker currently is at 120.08, still in range from that old entry. But it’s also now formed a flat base just above the prior consolidation. So it’s a base-on-base pattern with a 122.89 buy point.

Workday

Workday broke out of a 92.10 cup-with-handle on May 15. Since then the maker of cloud-based human resources and financial software has advanced, sometimes in choppy action, but never pulling back long enough for a proper consolidation. That is, until now. Workday has a new buy point of 111.55. Shares have risen 7 of the last 8 sessions, closing Friday at 110.23.

Workday has become consistently profitable over the past year, with strong growth seen for several years.

Ferrari

While Tesla (TSLA) always gets a lot of attention and General Motors (GM) has come in focus as stock surges, Ferrari has quietly been the top-performing auto stock all year, nearly doubling so far in 2017. The luxury car maker has a buy point of 118.20. Ferrari ended last week at 112.60, finding support so far at its rising 50-day moving average.

Maxim Integrated Products

The chipmaker has the longest flat base of the five stocks highlighted, going back four months. Maxim Integrated Products has a 49.80 buy point. Shares have been closing on that entry, settling Friday at 48.57.

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