Several stocks have seen exceptionally strong rallies in 2024 following base breakouts in 2023. Names like Palantir (PLTR) and Applovin (APP) , which are up roughly 325% and 765% year-to-date, have “gone parabolic” post-election. In steep uptrends like theirs, it can be difficult to determine when it is appropriate to take profits, and we can use the charts to help with a sell discipline. When a trend steepens, using the slope of a short-term moving average like the 20-day is helpful in determining when there has been a meaningful enough loss of momentum to warrant reducing exposure. We find that once the 20-day moving average rolls over, following a significant rally, it indicates that a correction is underway. Daily charts of PLTR and APP show that they currently have the support of their rising 20-day MAs, which favors holding existing positions. Once their 20-day MAs roll over, we would look to the 50-day MAs and the daily Ichimoku cloud model as a gauge of initial downside risk for a pullback. Depending on the level of support at that time, investors may want to manage risk. An alternative to the 20-day MA slope is looking for intermediate-term overbought “sell” signals to determine when a trend is exhausted. The weekly stochastic oscillator can be a helpful gauge of intermediate-term overbought and oversold conditions. Once the stochastics turn down from overbought territory, below 80%, we generally expect a few weeks of corrective price action. PLTR’s stochastics remain well above 80%, while APP’s stochastics are closer to breaching 80%. APP also has an active counter-trend signal from the DeMARK Indicators, which also attempt to show trend exhaustion, so we would be respectful if APP finishes the week (i.e., logs a Friday close) with its stochastics below 80% as confirmation of that signal. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. 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