Charts of the Day - Harry Boxer,TheTechTrader
by Harry Boxer, www.TheTechTrader.com
Be alerted when Harry posts an article
Delcath Systems (DCTH) is a stock we’ve liked a lot this year and you can see why. The trend has been beautiful for about a year now. The 6-month long trading-range consolidation basing pattern has broken. The stock thrust at the end of March and then moved into a more subdued but sharply rising channel. Tonight after the close, the company came out with very positive Phase III drug results and is now trading near 14 from 10.85. It should be a big day for that one tomorrow. I’d be inclined to take some off the table tomorrow in the 14 - 15 range. Look for a pullback and then maybe wait for a secondary thrust.
Echelon Corporation (ELON) had a significant day, breaking a 6-month declining topsline and taking out lateral price resistance as well with a 91-cent thrust, up about 10% on 750,000 shares. That’s the heaviest volume since the Feb bottom and could be signaling a change of characteristics that thrust this stock back up. There’s some minor resistance around 10 3/4, my short-term trading target, with secondary target around 12-12 1/2.
Pharmacyclics (PCYC), which we’ve mentioned many times in this report, has a beautiful rising channel. Right now a beautiful bull flag is forming with low volume and great technicals. I expect this trend to continue. Short-term target around 9 1/2-10. Intermediate target around 12.
Transglobe Energy Corp (TGA) is one of the few junior oils that is not giving it up here. As a matter of fact, it’s pushing forward in a beautiful rising channel. However, it is at some key lateral resistance, and if it pops through this I can see this stock looking at 81/4-1/2 short-term.
Other longs to learn more about at Charts of the Day are Applied Energetics, Inc. (AERG), Akorn Inc. (AKRX), Cost Plus Inc. (CPWM), Competitive Technologies Inc. (CTT), Entegris, Inc. (ENTG), Network Engines Inc. (NENG), Pacific Capital Bancorp (PCBC), Quality Distribution (QLTY), QuickLogic Corp. (QUIK).
That’s it for some of the ideas for today. The market refused to give it up despite the recent pullback. It was a nice consolidation day today, but we’ll see what happens going forward. I’m still of the opinion that when you’re at an important potential peak and that any longs that I talk about here should be played with sensible stocks.
