Sinisa Persich founded TraderHR (www.traderhr.com) in April 2004 as a destination point for traders around the world who use its daily swing trade set-ups to yield profits in both up and down markets. Persich, with a degree in electrical engineering from the Faculty of Engineering Rijeka, Croatia, uses a strategy of culling the wide universe of small- and mid-cap stocks each day and identifying those that are building strong continuation patterns. These are stocks that have already broken out (or broken down in the case of shorts) and are consolidating in bullish/bearish triangles, flags, pennants, rectangles and wedges ahead of the continuation of the trend. As his strategy is to capitalize on momentum and continuation patterns in a stock, Persich uses Buy Stop Limit Orders on his long trades, whereby entry points are set above previous day highs and he waits for the stock to come "up" to his buy price as evidence of continued momentum.
Eye on ETF, WFR & CFX May 13, 2013
The following are three stocks approaching or just above key levels of resistance, with strong potential upside. They are: Energy Transfer Partners (ETP): Breakout watch at 50.30. Target at top of rising trend line points above 52.00. MEMC Electronic Materials Inc. (WFR): Just broke out of bullish flag near top of four-month sideways channel, with a 5% rally on Monday. Rising trend line points to 7. Colfax Corp. (CFX): At the neckline of an inverted head-and-shoulders pattern.
Eye on JCI, STI, LRCX & FTK May 6, 2013
The following are four stocks approaching key levels of resistance and appearing poised for a breakout. They are: Johnson Controls (JCI): Breakout watch at 35.59. Suntrust Banks (STI): Flowing a flag on the intraday chart, with 30 the area to watch. Lam Research (LRCX): In a bullish flag with breakout watch at 46.60. Flotek (FTK): Watch for breakout above 16.50.
SANM, MIC, ACAD, RFMD & BBRY our Free Stock Picks April 30, 2013
Sanmina Corporation (SANM) has broken through lateral price resistance that contained the up move from 8 1/2 in mid-November to nearly 12 in late January, and subsequent double-top just above 12 in March. The stock has been flagging in the 12 1/2 area for the last four sessions, and appears poised to continue the uptrend. Macquarie Infrastructure Company LLC (MIC) is in a rising triangle consolidation pattern after its big move from 41 in mid-November to above 54 in late March.
Eye on KBR, AAP & NLS March 29, 2013
KBR, Inc. (KBR) is testing the breakout point of its lateral resistance line going back to August of last year. The stock is in an ascending triangle pattern with higher lows putting pressure on the 32-32.20 area, a break of which could move the stock significantly higher. Advance Auto Parts Inc. (AAP) is also in an ascending triangle pattern that is narrowing in the 82 area. On Thursday the stock broke out, up 1.01 to 82.65, and could see the 89-90 range next. Nautilus Inc.
Eye on HLS, M, and ACE March 12, 2013
HEALTHSOUTH Corp. (HLS) has edged above its resistance line in the 24 3/4 area going back to September. The stock is in an ascending triangle pattern, with higher lows, and in particular has advanced steeply since the start of the year, up nearly 20%. A break of this level could move the stock towards a test of 28, going back to May 2011. Macy's Inc. (M) is in a more defined ascending triangle, with higher lows putting pressure on the 42 area.
Eye on AXL, HBAN, CFNL, EQT & SGEN March 7, 2013
American Axle & Manufacturing Holdings Inc. (AXL) is testing the resistance line in the 13 area going back to early 2011. The stock is narrowing, with higher lows, in a year-long ascending triangle pattern. A move above 13.10 would signal a breakout. Huntington Bancshares Incorporated (HBAN) has edged above a key resistance level in the 7.20 area, and looks poised to test the 7.50 high from February 2011. Next level would be 8, not seen since late December 2009. Cardinal Financial Corp.
VHC, EL, ADY & INXN Among Charts to Watch March 4, 2013
VirnetX Holding Corp (VHC) is in a bullish ascending triangle putting pressure on the 36 level. A move above that level could break the stock out to all-time highs above 40, reached in July. The Est (EL) is also in a rising triangle pressing up against multi-month resistance at 65. A break of that level would position the stock to exceed its all-time high reached intraday on Feb 5 at 66.07. Feihe International, Inc.
Eye on CME, NDAQ, INFI, SFLY, AXL February 28, 2013
CME Group (CME) has edged above its rising trend line and also just above its resistance line at 59 3/4 going back to May 2011. A break of this level could signal a move initially to its last high at 62 from April 2011. Nasdaq OMX Group Inc. (NDAQ) is coiling in the 31-32 range after its big run-up from 25 at the start of the year, and looks poised to test multi-year highs at 32 1/2 going back to October 2008. Infinity Pharmaceuticals, Inc.
Eye on INFY, PANW February 25, 2013
Infosys Ltd. (INFY) on Friday broke above the resistance line of the flag it has been in since its 20% gap-up on January 11. First target is the 55 area, and beyond that the 60 area going back a year. Palo Alto Networks (PANW) is testing a resistance line in the 57 1/2 area after breaking out of wedge on Friday. Short-term target is 60.
Eye on MENT, ANAD, S, MTB & SVU February 13, 2013
Mentor Graphics (MENT) is in a bullish rising triangle, consolidating the up move from the 13 1/2 area in November. A move above 17.55 would signal a breakout, with a next target of 18. Anadigics (ANAD) is consolidating its big 150% move from 1.14 in November. A break of this 2 3/4 level would lead to our next target of 3. Sprint Nextel (S) has been moving relatively sideways for the past six months after its big move from the 2.30 area in the summer.
Eye on BRCD, MENT February 11, 2013
Brocade Communications (BRCD) appears to be possibly reversing its downtrend from its September 2012 high at 6.39. A break above 5.81 would move the stock above resistance that has held on several occasions since November and lead to next targets in 6-6.10 area. Mentor Graphics (MENT) is in a rising triangle pattern. consolidating the up move from the 13 1/2 area in November. A move above 17.55 would signal a breakout, with a next target of 18.
Eye on LVLT, GEO, C, ANAD, PDK, VHC February 7, 2013
Level 3 Communications (LVLT) is in a rising triangle formation, consolidating its steep move from just above 18 in late November to near 25. The stock is at a triple top just below 25 going back to September, a break of which could lead to next targets near its March 2012 high around 27 1/2. Geo Group (GEO) has been hovering sideways at around 33 in recent weeks.
Eye on CCJ, SIX, NFLX, DK February 4, 2013
We're keeping an eye on Cameco Corp (CCJ) for a breakout above its current 21 1/2-3/4 level, in which it's consolidated in the last 3 weeks after a run-up from 19 1/4 on December 28. The stock was as low as 16 3/4 in November and has reversed, with the next target at 23. Six Flags Entertainment (SIX) is in a symmetrical triangle pattern that is converging to a point a current levels in the 62 1/2 area.
Eye on BGCP, ONXX, NVE, MS January 31, 2013
BGC Partners (BGCP) is testing a resistance line in the 3.90 area, a break of which could signal a trend reversal. Onyx Pharmaceuticals (ONXX) is in a bearish flag after a steep 1-month downmove, and we're watching 76.20 as the breakdown point. Keep an eye on 19.05 as the breakout point for NV Energy (NVE) which is testing resistance going back three months. Morgan Stanley (MS) is in a bullish flag off its recent up-gap, and we're watching 23.10 as a breakout level for entry.
Eye on PKD, YPF, ZNGA, ASTX January 29, 2013
Watching Parker Drilling (PKD) for a breakout of its current flag formation to continue the recent steep uptrend since November. Breakout point is 5.70. Also watching Ypf Socieded (YPF), which is in a several month flag off its sharp move late last year. The breakout point is 16.00. Zynga (ZNGA) has broken above resistance, continuing its upside reversal of the past few months, with a short-term target of around 3 1/4.
Eye on MGM, CMO, CNO, ACN January 28, 2013
MGM Resorts International (MGM) has been consolidating in a bullish pennant pattern in the 13 area. The stock has been in a steep bullish channel, and a break of this level could quickly move the stock up into the 13 3/4 range short-term. Comerica (CMA) is also in a bullish pennant that constitutes a rest off a recent up-gap. (See flagpole on the chart.
Eye on QCOM, GA, FLO, KMB & HOT January 23, 2013
Qualcomm (QCOM) is in a rising triangle formation, both longer-term going back to last summer and short-term. The stock is up against key resistance at current levels, a break of which could move the stock quickly towards 68, last reached in April of last year. Giant Interactive Group (GA) is flagging just below 6 1/2 after a 3-day surge from under 5 1/2 at the start of the year. A break could move the stock towards levels not seen since September 2011, when the stock was near 8.
Eye on UNT, DCI, CBI January 10, 2013
Unit Corp. (UNT) is in a bullish pennant off the recent up move. Watch for a breakout above 47.38. Donaldson Company (DCI) is also in a bullish pennant after a recent up-gap, which broke a several-month resistance line. The stock appears to be reversing its recent downtrend. Chicago Bridge & Iron (CBI) looks poised to break out above current consolidation levels around 47 1/2, continuing the trend of its several-month bullish up-channel.
Eye on DDR, AMZN, MCP & FCS January 8, 2013
DDR Corp. (DDR) is bullishly flagging just below 16, having broken out above its descending trend line. Look for a possible initial move to 16.20 next. Amazon (AMZN) has broken out above resistance in the 260 area to a new all-time higher. The rising trend line points to the 300 area short- to medium-term. Molycorp (MCP) looks poised for a possible trend reversal after dropping to the 6 level. A move above 12 would confirm the trend, with a target of 14.
Eye on DLX & LMCA January 2, 2013
Deluxe Corp (DLX) is flagging bullishly in the 32 area. After a big surge from 22 in June to 32 in September, the stock went into a 3 1/2-month sideways pattern. A break of this level could accelerate prices. Liberty Media Corp (LMCA) is also in a bullish flag, a break of which could continue the uptrend that the stock has been consolidating in recent months. The stock is up nearly 50% from the 80 level in May, and looks poised to continue higher.
Eye on MGM, OAK, SMBL, SONC December 19, 2012
MGM Resorts International (MGM), which has been in a sideways channel in the 9 to 11 1/2 range for six months, is now at the top of that channel, butting up against resistance. A break of this level would lead to a short-term target near 13. Oaktree Capital Group, LLC (OAK) is in a bullish pennant off an early December surge of nearly 10% to the 44 area. The stock has been in an orderly up-channel from the 34 3/4 level in June, and the upper channel line points to a short-term target above 46.
Seven Stocks to Watch December 17, 2012
Here are seven stocks to watch, six of them longs, either at or near breaks of important levels that can accelerate prices. The Travelers Companies (TRV): Has broken out of a flag into all-time high territory, with trend likely to continue toward 77 short-term. Starbucks (SBUX): In a bullish pennant, with next resistance at around 56. Citigroup (C): Likely to accelerate on a break above resistance at 38.50.
Six Stocks at Key Breakout Points December 14, 2012
Six stocks are at or nearing key breakout points out of bullish consolidation patterns. They are Nokia (NOK), Micron (MU), Bank of America (BAC), Apple (AAPL), Republic Services (RSG), Omnicare (OCR), CapLease (LSE):
Eye on SBUX, X, GPOR, SGMS December 12, 2012
Starbucks Corporation (SBUX) is in a bullish flag off its December 6 gap-up of almost 6%. A move above the gap high of 53.70 could lead to a short-term target at 55.82. The stock has rallied from just under 45 in late October, after dropping from its all-time high set in April at 62, so has plenty of room for continued upside. United States Steel (X) has been coiling in a symmetrical triangle consolidation for the last six months, and is approaching the declining tops line.
Eye on FB, GVA, IMH, MLM December 10, 2012
Facebook is in a bullish pennant off a steep up move from 19.21 on Nov 9 to 28 on Nov 30, and poised for continued upside. A move above 28 should lead to next targets at 29.62 and then 31.99. Granite Construction Incorporated (GVA) is also bullishly flagging off a November up move. The stock has risen from the bottom (at about 28) to the top (around 31) of its 3-month sideways channel, peaking just above it on Friday.
Eye on ROK, HP, HTZ, SFD November 26, 2012
Rockwell Automation (ROK), with a move up 99 cents to 78.39 on Friday, has peeked above the top of a bullish flag pattern it has been in for the last three weeks. The stock in late October broke out of a multi-month consolidation, rising from 68.73 to 78.92 in two weeks before the recent flag, and now looks poised to continue the up move. Helmerich & Payne Inc.
NTE, FMCN, VRPT, NFLX Charts to Watch November 14, 2012
Today we feature three longs and one short to watch. Nam Tai Electronics, Inc. (NTE) is in a bullish pennant off the steep gap from 10 3/4 to over 15 on November 5. A break above 15 would give the stock next targets of 16.64 and 18.42. Focus Media Holding Ltd. (FMCN) is in a sideways consolidation after gapping up 5% on November 2 to just near 25. First target on a breakout is 25.47 and then 26.17. Vistaprint N.V.
AUO, FSLR, GPRE, OMCL our Free Stock Picks November 12, 2012
AU Optronics (AUO) is in a rest/consolidation period off the big run-up from 2 3/4 to nearly 4 in August and early September. The recent move above 4 positions the stock to break out to the 4.40 area. First Solar (FSLR) is also in a wedge pattern after its August surge from below 15 to over 25. A move above the upper trend line in the 26.40 area would confirm a breakout, with a short-term target of 28.80.
ADBE, CHS, UNM our Free Stock Picks November 6, 2012
Adobe Systems (ADBE) is testing its resistance line in the 34 1/2 area going back to early April. A move above 34.65, in particular, would signal a break of the 7-month sideways pattern, and possibly resume the uptrend of December through March when the stock rose nearly 40%. Chico's FAS (CHS) has edged above its resistance line in the 19 1/2 area that has contained prices in its two-month consolidation. The stock had moved from 13.70 in mid-June to 19.
ZZ, MFC, PMC our Free Stock Picks November 5, 2012
We're watching Sealy Corporation (ZZ) closely for a breakout above 2.28, as the stock has been in a flat base pattern for a month and a half. The pattern is a consolidation off the steep rise from 1.59 to 2.20 in mid-September, and a break could continue the uptrend. Manulife Financial Corp. (MFC) is in a symmetrical triangle that is narrowing right here at the 12.60 breakout point, where the stock closed on Friday.