CREE, FRC, ITRI, WMS - Stock Charts to Watch
The market has been acting very strongly for six sessions now, however, we’re due for a pullback. There are quite a few stocks that are not acting so well so we’re going to go over some of the Boxer Shorts. The pattern doesn’t look so good on some of these, and we’ll continue to recommend them as downside possibilities.
Cree Inc. (CREE) is looking pretty ugly. It has gone from a high at the 72-73 range in December all the way down to the low 30s. It was down another 1.05 on Tuesday, and near the lows for this year and the last two years or so. Next target is around 28.
First Republic Bank (FRC) is also looking quite ugly lately. It came down hard from the 34 area to around 30 1/2, bounced to the moving average, failed and rolled over. It is now at key support, lateral and trend line support. If it breaks here, it could see something in the high 20s, maybe even 27.
Itron, Inc. (ITRI), which has been in a down channel for more than a year, is still in a down channel. More importantly, key support has been broken recently. This stock is trying to snap back toward that area. There’s no response in technicals or volume. It could be nothing more than a technical snapback to test resistance around 50 1/2. Another rollover could take place to the 43 -45 zone.
WMS Industries Inc. (WMS), which formed a head-and-shoulder top in November, December, and January, broke in late January, formed a bear flag, failed at the moving averages and declining topsline, came down, bounced, failed, formed a bear wedge, came down hard, and formed another bear wedge. On Tuesday it dropped 58 cents and may have fallen out of the bear wedge under the declining topsline and moving averages. Look for a test of the lows at 27 1/2 - 28, and if that’s taken out look for something around 24 - 25.
Other stocks in our Charts for the Day are Akamai Technologies Inc. (AKAM), (DGI), Dolby Laboratories, Inc. (DLB), Dawson Geophysical Co. (DWSN), Gen-Probe Inc. (GPRO), IHS Inc. (IHS), Pioneer Southwest Energy Partners L.P. (PSE), The Scotts Miracle-Gro Co. (SMG), Trex Co. Inc. (TREX), Vera Bradley Designs, Inc. (VRA), VSE Corp. (VSEC).