Stocks Scanning: 15 Names, But Most Are Too Early to Buy

I went through today’s stock screen and something stood out right away. We’ve got 15 stocks, and the strongest groups are tech (DELL, PANW, CRWD, NTAP, OKTA) and healthcare (DVA, NHC, LLY). But here’s the thing — most of these names are sitting near their 52-week highs with very short bases. That’s not ideal for a swing trader like me. I want to see a proper consolidation before I jump in.

What Makes These Stocks Names?

Every stock on this list passes CANSLIM criteria. The RS Rating (1-99) measures price strength against every stock in the market — that’s the “L” for leaders. An RS Rating of 99 means the stock is outperforming 99% of all stocks. The EPS Rating grades earnings growth (the “C” and “A”), and the Composite Rating blends both. When you see ratings in the 90s, you’re looking at stocks with strong momentum and solid earnings. But ratings alone don’t tell you when to buy — that’s where the chart comes in.

Stock-by-Stock Analysis

DELL — Double bottom with a mature base, but the contraction sequence is messy

DELL shows a double bottom (W-shaped) base that’s 7.2 weeks long and 23.9% deep. That’s a mature base by O’Neil’s rules — a double bottom can run 7-65 weeks, and the depth is within the 15-33% range. The contraction sequence goes 23.9% → 14.7% → 20.6%, which is NOT shrinking consistently. That’s a red flag for a proper VCP. Volume is drying up inside the base, which is good, but the up/down volume ratio is only 1.01 — neutral. The stock is 15.9% above its 50-day MA, which is extended territory. I’d call this one extended — too far above the 50-day to chase here.

DVA — Bull flag, but the flag is too short

DVA has a bull flag pattern: a 25.8% pole over 19 sessions, then a 12-session flag that’s only 6.4% deep. The flag duration is just 2.4 weeks — O’Neil likes flags to be 1-3 weeks, so this is borderline. Volume is drying up inside the flag, which is constructive. The up/down volume ratio of 1.96 shows strong accumulation. But the stock is 10.5% above its 50-day MA, so it’s not exactly cheap. This one is forming a base / tight contraction, but it’s early. I’d watch for a proper breakout above the flag high on heavy volume.

VLO — At a 52-week high with no base — skip it

VLO is at a new 52-week high with only 1 session of base depth. That’s not a base at all — it’s just a stock that’s been running. The 10d/50d volume ratio is 0.96, which is flat. The up/down volume ratio of 1.91 is strong, but without a proper consolidation, there’s no pivot to buy. This one is extended — too far above the 50-day at 15.7%.

NHC — Testing the high, but volume isn’t confirming

NHC is testing its 52-week high with only 3 sessions of base depth. The base depth is 6.8%, which is tight, but the duration is just 0.6 weeks — way too early. Volume is drying up, and the up/down volume ratio of 1.57 shows accumulation. But I need to see a proper base form before I’d consider it. This one is building a base mid-correction / watch only.

PANW — Testing the high, but the base is too young

PANW is testing its 52-week high with a 12.7% base depth over just 4 sessions. That’s not a base — it’s a pullback. The 10d/50d volume ratio is 0.73, which means volume is drying up. The up/down volume ratio of 1.44 is decent. But the stock is 10.4% above its 50-day MA, so it’s not resting. This one is building a base mid-correction / watch only.

ILMN — At a 52-week high with zero base — no thanks

ILMN is at a new 52-week high with 0 sessions of base depth. That’s a breakout from nowhere. The stock is 16.5% above its 50-day MA, which is extended. The up/down volume ratio is only 1.09 — barely positive. This one is extended — no base to work with.

CRWD — Cup-shaped base, but it’s way too early

CRWD shows a cup-shaped base that’s only 1.2 weeks long and 16.4% deep. O’Neil says a cup needs at least 7 weeks. This one isn’t even close. Volume is drying up, and the up/down volume ratio of 1.31 shows some accumulation. But the base is immature. This one is building a base mid-correction / watch only.

NTAP — Cup-shaped base that’s mature — this is the best setup on the list

NTAP has a cup-shaped base that’s 7.4 weeks long and 22.6% deep. That’s mature by O’Neil’s standards (7+ weeks, 15-33% depth). The contraction sequence is 18.9% → 9.3% → 12.3% — not perfectly shrinking, but close. Volume is drying up inside the base, which is what you want to see. The up/down volume ratio is 0.99, which is neutral. The stock is only 6.2% above its 50-day MA, so it’s not extended. This one is forming a base / tight contraction — constructive, and I’m watching for a pivot above the base high.

OKTA — Flat base forming, but it’s too early

OKTA shows a flat base that’s only 1.2 weeks long and 14.8% deep. A flat base needs at least 5 weeks and no more than 15% depth. The depth is okay, but the duration is way too short. Volume is drying up, and the up/down volume ratio of 1.27 is decent. But this base isn’t ready. This one is building a base mid-correction / watch only.

TRV — At a 52-week high with no base — extended

TRV is at a new 52-week high with 0 sessions of base depth. The stock is 18% above its 50-day MA — that’s way extended. The up/down volume ratio of 1.88 shows strong accumulation, but there’s no base to buy from. This one is extended.

BNY — Flat base forming, but too early

BNY shows a flat base that’s only 1 week long and 4.7% deep. The depth is fine, but the duration is way too short. The 10d/50d volume ratio is 1.15, which means volume is picking up. The up/down volume ratio is 1.06 — neutral. This one is building a base mid-correction / watch only.

WELL — At a 52-week high with no base — extended

WELL is at a new 52-week high with 0 sessions of base depth. The stock is 11.9% above its 50-day MA. The up/down volume ratio of 2.16 is strong, but there’s no base. This one is extended.

LLY — Pullback to the 20-day MA — normal rest in an uptrend

LLY is pulling back to its 20-day MA, which is a normal rest in a strong uptrend. The base depth is 9.2% over 2.4 weeks — not a mature base, but the pullback is tight. The up/down volume ratio of 1.55 shows accumulation. The stock is only 5.4% above its 50-day MA, so it’s not extended. This one is forming a base / tight contraction — I like the tape here, but I’d wait for a bounce off the 20-day or 50-day before considering it.

AAPL — Testing the high, but volume isn’t confirming

AAPL is testing its 52-week high with only 4 sessions of base depth. The base depth is 4.7%, which is tight, but the duration is too short. The up/down volume ratio of 2.07 is strong, but the 10d/50d volume ratio is 0.85 — volume is drying up. This one is building a base mid-correction / watch only.

TRN — Testing the high, but volume isn’t confirming

TRN is testing its 52-week high with only 4 sessions of base depth. The base depth is 8.5%, and volume is drying up. The up/down volume ratio is only 0.85 — that’s distribution, not accumulation. This one worries me. This one is building a base mid-correction / watch only.

How I Would Use This List

Today’s list has a lot of stocks near highs, but most lack mature bases. I’d focus on NTAP and DELL for their longer consolidations. For the others, I’d wait for proper pivots — a breakout above the base high on volume at least 50% above average. And I’d always respect the 7-8% stop loss. The general market (the “M” in CANSLIM) is something you need to judge yourself — if the market is in a correction, even the best setups can fail.

FAQ

What is the IBD RS Rating?

The IBD RS Rating is a 1-99 percentile score that measures a stock’s price performance over the last 12 months compared to every other stock in the market. A rating of 99 means the stock is outperforming 99% of all stocks. It’s the “L” in CAN SLIM — leaders, not laggards.

What does “extended” mean in stock charts?

“Extended” means a stock has moved too far above its 50-day moving average — usually more than 10-15%. Buying an extended stock is risky because it’s more likely to pull back or correct. You want to buy near a proper pivot point, not after a big run.

What is a volatility contraction?

A volatility contraction (VCP) is a pattern where each pullback in a base is smaller than the last, and volume dries up as the base progresses. It shows that sellers are losing power and the stock is getting ready to break out. Mark Minervini popularized this setup.

This content is for educational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.