Palo Alto Networks , Eli Lilly , and Eaton rallied hard over the past 12 months — up 127%, 117% and 66%, respectively. It’s wonderful news for existing shareholders. But it’s not great for investors waiting for pullbacks to start positions — unless you want to buy at or near record highs, which is something we never recommend. So, how do investors who feel shut out by the rallies get in? We r ecently analyzed our Significant Six mega-cap stocks to determine entry points based on 2024 earnings estimates. This time around let’s take a look at these winners from the portfolio, all decidedly not Big Tech. The goal: Find price levels for investors who don’t currently have positions. If you already own shares, consider your cost basis and last buy for entry points. The goal with subsequent buys is to reduce your overall cost basis. A few caveats first: We are not technical analysts. Our decision to own a stock is based on fundamental analyses of both the company and the broader economic picture. If we like the fundamentals, technical analysis can then help provide some guidance on when to buy. We’re not looking at exotic tools and indicators, we just want to identify entry points. Context is important. Look at company news, geopolitical or regulatory events, and market dynamics. Don’t look at the charts or levels in a vacuum. Rather, as you analyze the daily news flow ask yourself what it means for multiples, sentiment, and earnings revisions. Charts are just one (small) part of your research. Check the volume. Trading volume is your lie detector. You want to see volume pick up at key support levels to show there is serious demand for the stock, enough to overwhelm the selling pressure. Heavier volumes provide more confidence. Volume can be viewed simply by selecting the indicator on your trading platform and should be compared to its historical average. Palo Alto Three potential entry points: $350, $315, $280, and $256. This is a pretty wide range of levels, but…
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