Strong performances in Monday’s session and positive price and money flow indications have these four stocks positioned to move higher. Here’s my analysis of the Cavium Networks (CAVM), AmTrust Financial services (AFSI), DCT Industrial Trust (DCT), and LKQ Corporation charts published on TheStreet this morning.
Many thanks to Jim Cramer and his Mad Money team for the opportunity to be featured on the “Off the Charts” segment of the show.
(Here’s a recap of the segment published on TheStreet.)
The S&P 500 index broke through 2190 resistance and then returned to successfully retest that level. Now it looks like after that brief pause it is ready to resume the uptrend that began early last month. The relative strength index remains above its centerline and the MacD never completed what looked like a potential bearish crossover. This market continues to be bought as evidenced by volume and the reading on the Chaikin money flow index.
Shares of these three automotive parts manufacturers have been consolidating in well-defined technical patterns and look ready to breakout. Here’s my analysis of their charts published on TheStreet this morning.
I highlighted a trading set-up on the Pandora (P) chart last week and recommended it as a buy at its then current level. The stock broke out of the cup and handle formation it had been basing in on its daily chart and up to a long term downtrend line on its weekly chart. The charts can’t predict take over rumors but consolidation patterns and defined levels of support and resistance develop sometimes, for reasons that do not show up in the most diligent fundamental analysis.
The base metals are reliable indicators of improving consumer sentiment and economic growth and the recent price action in these two stocks could be good news for the economy and investors. Here’s my take on their charts published on TheStreet this morning.
The iShares Russell 2000 ETF (IWM) formed a large bearish engulfing candle in Monday’s session that encompassed the previous two day range. It has rallied over 16% from its low early this month to its high last week and is technically overbought. The relative strength index reflects the overbought condition and the percentage volume oscillator, a MacD representation of volume, has made a bullish crossover and is below its center line. The small-cap stocks have led the broader market in the past and their price and volume action should be monitored carefully.
Shares of Pandora (P) may be setting up for a short covering rally. Here’s my take on the chart published on TheStreet this morning.
These four stocks have formed technical cup-and-handle patterns on their daily charts and are testing their rim line resistance levels.
These are my articles published on the TheStreet last week: