CYOU, SPRD, ABCO, LECO - Stock Charts to Watch
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It was a disappointing day on Wall Street on Monday, even though they did close with gains on the day. Since there is an uncertainty as to which way the market will go on Tuesday, depending on whether secondary support will hold or not, we will take a look at both longs and shorts.
Changyou.com Limited (CYOU) had a big day on Monday. It gapped, ran, opened strong, and closed up 3.63 to 23.00 even, or 18.7%, on 1.7 million shares. That’s the biggest volume all year. At the end of July, it had a strong surge that broke out above the declining topsline and backed off resistance. It went up through that on Monday, and the next target is up around the 25-25 1/2 area, and beyond that, up around the 26 area, but there’s a little resistance up there. Eventually, perhaps, this stock could get up around 29-29 1/2. First, let’s see what kind of follow-through it gets. Spreadtrum Communications Inc.
(SPRD) is finally looking good. It broke out in June, pulled back to test, bounced around for a while, moved up to resistance, backed off to test the channel, and then, boom, it broke out on Monday, up 1.37 to 20.36, or 7%, on 1.8 million shares, the best volume in a couple weeks. If it has a clean breakout, look for a move to 22 short-term.
On the Short Side…
Advisory Board Co. (ABCO) had a major rising channel from February until mid-July, it broke out, snapped back, and then went to lower lows, and even though it stalled for two days, on Monday, it dropped 72 cents to 42.80. That’s not significant, but it looks like it could roll over, and eventually, get into the high 30’s.
Lincoln Electric Holdings Inc. (LECO), after breaking down and forming a big wedge, it broke down with a thrust, and is now forming a bear wedge, and is looking like it could really fall apart, perhaps getting down to test the mid-30’s.
Other stocks in our Charts for the Day are Amyris, Inc. (AMRS), Endocyte, Inc. (ECYT), 8x8 Inc. (EGHT), First Solar, Inc. (FSLR), Isis Pharmaceuticals, Inc. (ISIS), Pluristem Therapeutics, Inc. (PSTI), REEDS, Inc. (REED), and Vringo, Inc. (VRNG).
Stocks on the short side include Chipotle Mexican Grill, Inc. (CMG), The Cooper Companies Inc. (COO), CARBO Ceramics Inc. (CRR), Deckers Outdoor Corp. (DECK), Lincoln Electric Holdings Inc. (LECO), Red Robin Gourmet Burgers Inc. (RRGB), and United Rentals, Inc. (URI).