CAR, FIRE, MDSO, SHLD - Stock Charts to Watch
The stock market had a good morning on Tuesday, although it didn’t close well. There were a lot of stocks that we follow that did very well, however, so let’s go over some of those.
Avis Budget Group, Inc. (CAR) formed a big base over the last year, and on Tuesday, it had a big breakaway gap that moved through the moving averages, through the March highs, past the key October and February highs, and then closed above it with a thrust of 2.51 to 15.67, or 19%, on 9.2 million shares. That’s the biggest volume this year. The long-term chart shows a couple layers of resistance. The next target is at 16 1/2, but the swing trade target is up around 18.
Sourcefire, Inc. (FIRE) had an explosive move on Tuesday. At one point, this stock was up about 8 points. It closed up 6.64 to 57.63, or 13%, on 3.4 million shares after earnings report. That’s the second biggest volume in about a year on this stock. It broke out of a rising channel and held the 50-day recently, and then exploded. The long-term chart shows a very interesting long-term rising channel, and this stock to be an 89 - 90 stock on a long-term basis. Short-term, look for something in the mid- to high-60’s.
Medidata Solutions, Inc. (MDSO) popped out of a wedge on Tuesday, and closed up 2.73 to 28.64, or 10 1/2%, on 800,000 shares traded. That’s the biggest volume in a couple months. The weekly charts show that it is in new all-time high territory. The 5th wave may be under way. Look for something in the low- to mid-30’s.
Sears Holdings Corporation (SHLD) had a monster run from January through March, going from under 30 to the high 80’s in just 90 days. Then, a very orderly retracement took place. In a very narrow, tight channel, it went all the way back down to below 50. On Tuesday, after moving up slightly for a couple days, it popped 8.27 to 62.05, or 15%, on 4.8 million shares. That was still 3 1/2 points off the high when it backed off the 50-day moving average. Watch for that to be taken out. The next target is in the mid-70’s.
Other stocks in our Charts for the Day are Advanced Energy Industries, Inc. (AEIS), Allot Communications Ltd. (ALLT), Cardtronics Inc. (CATM), 3D Systems Corp. (DDD), Digital Domain Media Group, Inc. (DDMG), Georgia Gulf Corp. (GGC), IPG Photonics Corporation (IPGP), Michael Kors Holdings (KORS), NuVasive, Inc. (NUVA), Ubiquiti Networks, Inc. (UBNT), Veeco Instruments Inc. (VECO), and Velti (VELT).