EDAC, JSDS, PPCO, PTC Among Our Charts to Watch
by Harry Boxer, www.TheTechTrader.com
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There are a few longs out there that are looking pretty interesting. Some of them are lower-priced stocks, but I wanted to show you the patterns.
Edac Technologies Corp. (EDAC) has suddenly come to life. After the nice run-up it had from March to the spike in May that took it from about 2.71 to 6.80, the stock then pulled back, bounced, and pulled back again in a wedge-type pattern. It has gotten very quiet and narrow, yet technicals have held up very well despite the market pullback. This stock is putting on a good show, and very narrow, light volume today of under 10,000 shares puts this in a position where it could certainly spike up and break out if the market decides it wants to make a more prolonged move up. Definitely one to keep an eye on. Resistance is 6.80, with ultimate target of 9-plus.
Jones Soda Co. (JSDA) broke out of a 2-year base pattern, spiking up on heavy volume a week ago. The daily chart shows a big gap, followed by an inside day, and then the spike up. Since then it's formed a 5-day bull flag on lower volume with good technicals. Looking for an eventual breakout to the upside that gets this up to the 3.00 level.
Penwest Pharmaceuticals Co. (PPCO) had a significant price-volume surge and technical move today, up 74 cents, or nearly 27%, on nearly 2 million shares, the biggest volume we've seen going back 2-3 years. A significant technical day. The stock got to 3.70 and pulled back to close at 3.52. It did not take out resistance, and so overhead resistance at around the 3.88 area may be tested. We'll keep an eye on this level to see if we get an eventual breakout above that range and a move. If that does occur, I would look for a target in the 5.00 range, then up around the 6 1/2 - 7 zone.
Pactiv Corp. (PTV), after forming a 3-year head-and-shoulders type pattern, broke out in May with a big price-volume surge and break-away gap. It formed a beautiful flag over the next 2-3 weeks, and today jumped 1.47 to 29.50, a 5.24% gain on 7.3 million shares. A significant day and it may be signaling that it's going to take out the 30 range and run. My trading target is 33.
Other stocks on Harry’s Charts of the Day are Fronteer Gold Inc (FRG), and Questcor Pharmaceuticals, Inc. (QCOR).
