Stock Trends

The 2025 Base Finder

Good morning,

It’s time for the third annual Base Finder edition of Stock Trends.

Before we get into the charts, a few notes for first-time readers.

1. We’re looking for big bases here. That means at least several months, but in most cases a year or longer of accumulation with a clear horizontal resistance level.

2. Big bases are all about potential. Not every base is going to work but the hope is for significant upside once the stock breaks out of its base.

3. Just because it’s in this report, doesn’t mean it is a buy right now. With bases, we’re looking to either buy a breakout or be there before the breakout if the stock is showing the right combination of short-term momentum and relative strength. Several stocks here are already on our Blue Chip Hot List and all are future candidates. But I’m not officially endorsing it until it goes on the Blue Chip Hot List.

Finally, in contrast to previous reports, I’ve organized this year’s stocks into several groups, based on various characteristics. Those are:

• Blue skies potential

• Bottoming bases

• The energy names

• Stocks that have already broken out

Let’s get into it!

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Blue skies potential

These are the most ideal base setups, all things equal. A base below all-time highs indicates a breakout would put every current shareholder in the green and leaves no overhead supply as potential resistance.

ACN: Accenture PLC

Call it a base, call it a cup and handle, call it whatever. If ACN can clear $388, the measured target suggests an additional $140 of upside.

C: Citigroup

Okay, technically not “blue skies” since the GFC highs will never be seen again. But Citigroup is still a 4-year base and a move above $80 would put everybody who bought after 2008 in the green.

CDNS: Cadence Design Systems

Already on our Blue Chip Hot List, CDNS tried to make a move on Monday but reversed course Tuesday with the broader semiconductor industry. $327 is the magic level here.

CINF: Cincinnati Financial