Chart of the Day - Harry Boxer, TheTechTrader.com
by Harry Boxer, www.TheTechTrader.com
Again today we’re going to talk about some stocks that are moving and breaking out.
American International Group (AIG) had a significant session after a 6-month declining channel. It popped in February, pulled back and retested, formed a right-handed extended the bottom, broke out yesterday slightly and today followed through and thrust not only through first but second level of resistance. It got as high as 34.80 before backing off to 32.77, but up about 12.6% on over 58 million shares, up 3.67.
I consider that an important day, the volume being the heaviest volume since last September. It could mean a new trend has initiated. The moving averages have flattened out and are rolling back over and crossing over. The bottom line is this stock looks like it’s headed for higher levels. Trading target now in the high 30’s, beyond that in the low to mid 40’s, short- and intermediate-term, potentially.
Dendreon (DNDN) continues to make new all-time highs almost every day. The chart shows a significant price-volume surge followed by a little bit of a rising flag today. It popped another 98 cents on more than 5 million shares, and the stock is just pennies away from its all-time high headed, in my opinion, to the low 40’s to mid to high 40’s.
Skechers USA (SKX) had a significant session today breaking out of a trading range to multi-year high territory on very big volume, 2 1/2 million shares traded and closed up 2.21 or 7.3%. At this point, based on the current pattern, it looks like this stock wants to move into the low 40’s. My trading target short-term, however, is around 37 – 38.
China Digital TV (STV) broke out of a base, backed off and held it for four or five days, moved up yesterday and today popped 40 cents. Volume increased and technical surged. Looking for a move to 9 and then 10 1/2.
Other stocks on Harry’s charts are Cerus Corporation (CERS), Clearwire Corporation (CLWR), Force Protection (FRPT), MAP Pharmaceuticals (MAPP), Emerson Radio Corp. (MSN), Netlist Inc. (NLST).
