[Premium] Trade Of The Week

Paper stocks have been showing up in our scans. But it's not a 'pick anything' kinda market yet.

JK Paper, however, has been displaying a great deal of strength. Take a look at the price move as of closing last week. The price broke out above its resistance of 275 along with a breakout in the momentum indicator.

This strong move, along with the momentum indicator, at a time when paper stocks are indicating something positive definitely calls for a peek. And peek, we did! Look at how the stock has been forming a base for almost a year. This base breakout looks like it's ready to rally.

JK Paper is also displaying great strength on a relative basis and hence managed to tick almost all our prerequisites.

We are bullish above the risk management level of 275, with a target close to 410.

Thanks for reading and please let us know if you have any questions.

And if you're a Premium Member, be sure to check out our other weekly post, "Three Charts For The Week Ahead."

Allstarcharts Team