In this post, I will explain how I used my Benzinga Pro to find a bullish stock. If you don’t have Benzinga Pro right now, you could sign up for a free trial here.
Step 1: Go to Benzinga Pro Calendar
Step 2: Select Analyst Ratings
Step 3: Set the Calendar to the past 3 weeks
Step 4: Customized the Filter Section
Step 5: Select Rating
Then deselect all. We need a bullish stock so we will choose all the positive ratings. In the Rating section, choose:
- Market Outperform
- Sector Outperform
- Strong Buy
Step 6: Edit columns
We need to reduce the noise so it’s easy for us to see what is important. In the column section, remove:
- Analyst Name
- Action on Security
Step 7: Arrange Price Target
Start from the highest price.
Step 8: Start browsing for stocks
Now that we eliminate some of the items we don’t need, this is the point where you will start browsing. I pay attention to the symbol, the analyst firms such as B of A, Citigroup, Stifel, Goldman Sachs, Morgan Stanley, Barclays, as they were known for moving the stocks after the ratings.
Check the date when they released the ratings. This is the part where you backtest the analyst ratings by checking the daily chart movement.
Hover the mouse to the symbol, click it and it will show you the overview of the stock. This will show you the fundamentals. You want to see how this stock moves after the ratings. In this stock, Benzinga Pro alerted at 6:00 AM that Goldman Sachs upgraded SHAK (Shake Shack, Inc.) to buy rating.
Step 9: Select the chart and do some technical analysis
Notice how the stock moves to the upside after May 25th. Prior to the rating, the stock was around the level of $82 to $85 and come June 1st, it starts to test $95 – $96 level. Also there’s a gap to be filled between $96 to $100.
Step 10: And finally, plan the trade
If I will trade this, I can go long here but I will wait for a minor pullback to around $86.50 – $88 level. That will be my entry point there with a stop at $84. The gap to fill is at $100 so this is a high probable trade for me. I could start scaling at around $96 with a final exit at $101.
I am not a financial advisor and even an analyst, and this is my opinion only.
Trading tools like Benzinga Pro are very powerful and helpful in finding high probable trades. As traders, we need to plan carefully, figure out the risk without exceptions and patiently wait for the right set-up and execution. Now, it all depends on us, the amount of hard work and determination, to bring ourselves to the next level.
Do you want to bring your trade to the next level?
Try Benzinga Pro and see for yourself.