ARST, ARUN, MSTR, NCIT Among Our Charts to Watch
by Harry Boxer, www.TheTechTrader.com
Be alerted when Harry posts an article
I’m going to discuss both longs and shorts today and go over some charts that look attractive.
On the long side, ArcSight, Inc. (ARST), which was a big darling and a favorite of ours, having run from the 4 range up to just under 30, finally triple-topped early in the first quarter. It came down in a nice bear trend. As a matter of fact, it was being considered for the Boxer Shorts list. But it gapped up big time on Friday and followed up with another 45 cents today. The best part about today is that it didn’t back off and held its 50-day moving average. If it gets a move over the 24.70-25.00 zone, I think this stock could make it up towards a retest of those highs, and that’s my trading target, up around 29 plus.
Aruba Networks, Inc. (ARUN) came out on Friday and popped out across a head-and-shoulder type pattern, a consolidation that was under way after a long run. The stock has gone from 1.85 in late 2009 to up the near 15 range. Today it had a significant breakout with a volume increase and the stock was up 34 cents. We’ll see if we get a follow-through. There’s some resistance around the 15-15 1/2 range, but my target is 18-18 1/2.
On the short side, MicroStrategy Inc. (MSTR), after a big move up over the last couple years that took it from the low 30s to over 100, topped out, broke down, rallied back on 3 or 4 occasions, but has not been able to get through the 78-78 1/4 zone, which is resistance. If it breaks to the downside, I can see this stock moving into the low 60s and then the mid-50s.
NCI, Inc. (NCIT) broke hard in early May, and it’s done very little except go sideways and form a bear coil or flag of sorts. If this stock breaks down from here, I would not be shocked to see it test October’s low down around 18.
Other stocks on Harry’s Chart of the Day are Community Trust Bancorp Inc. (CTBI), Harken Energy Corp (HKN), IDT Corporation (IDT), InfoLogix, Inc. (IFLG), L & L Energy, Inc. (LLEN), Netlist Inc. (NLST), United States Natural Gas (UNG), Westport Innovations Inc. (WPRT), CF Industries Holdings, Inc. (CF), Duoyuan Global Water Inc. (DGW), Google Inc. (GOOG), Quicksilver Gas Services LP (KGS).
