Timing buys and sells using technical analysis is one of the Four Pillars of The IBD Methodology to find the best stocks. A pullback to a stock's 10-week moving average can provide a buying opportunity to add to a position. Intuitive Surgical, Pinnacle West Capital and Intercontinental Exchange are all in buy zones after retreating to their 10-week lines.
All three appeared on IBD MarketSurge's screen "Pullback to 10-Week Line." These look to be some of the best stocks to own as they hold IBD Composite Ratings that range between 90 and 95.
A buy signal triggers when a stock retreats to its 10-week line. The buy zone range is the standard 5% above the buy point. Research also shows that it's best to buy on the first or second bounce off the line after a breakout.
Intuitive Surgical In A Buy Zone
Intuitive Surgical reached a record high on Sept. 13. Shares sank to the 10-week line last week around 478.76 and are in a buy zone up to 502.77.
This recovery occurred after shares eased from the 20% profit zone of a flat base with 403.76 buy point. The stock has climbed nearly 45% so far this year.
Intuitive Surgical makes the robotic-assisted, minimally invasive da Vinci surgical system.
Two More Of The Best Stocks To Watch
Intercontinental Exchange hit a record high in early September amid a four-weeks-tight pattern. Shares were due for a pullback after an impressive run since a flat base breakout in early July.
The stock retreated to its 10-week line around 158.26. Also, that puts the stock in a buy zone up to 166.14.
Intercontinental operates 12 global financial and commodity exchanges and marketplaces.
Finally, Pinnacle climbed for nine out of 10 weeks after it broke out of a cup-with-handle base in July. The stock reached a 52-week high in mid-September before retracing to its 10-week line near 88.13.
Further, shares are in a buy range up to 92.53. Pinnacle provides electricity and energy products in Arizona.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
