There are lots of good-looking patterns out there as the indices had a terrific session today and broke out across important resistance levels, declining topslines, and so on. The market consolidated for most of the rest of the session and we’ll see if there’s follow-through.
Low-priced AXT Inc. (AXTI) is setting up well. It’s been in a beautiful rising channel over the last year. A very tight one, reaching the top of that channel three weeks ago. It backed and filled in a coil-type pattern. Today it popped 10%, or 53 cents. Volume picked up, and technicals are surging near highest level of the year. Looks like a run toward the 6.75 area, or so, on a very short-term basis may be doable.
Blue Coat Systems Inc. (BCSI) had an important breakout today out of declining channel that was underway over the last four months. The first key lateral resistance was broken out of this mini-pattern here. This stock gapped up, broke away, broke through the 50-day moving average, and closed near the upper end of the range on more than 3 million shares, up 2.25, or about 12%. Looks like a move may be coming the next couple three days to get this towards 23 1/2, my short-term trading target. If we should breakout of that, then I could see this moving into the high 20s.
GeoEye, Inc. (GEOY), also in a similar pattern, broke out of a coil today. Stuck its head out, jumped 1.65. If it gets through 39 3/4, which is the resistance from this spike high in Aug, we’re looking for about 44 on this stock.
Isilon Systems, Inc. (ISLN) is continuing to do very well. A member of my Top 25. Broke out in July, consolidated for a month, broke out again in August, consolidated for a week, broke out again today, up 1.21. Looks like right now it’s pressing the top of the channel, and could pop and surge here. Mid 20s target. Secondary target 28 3/4.
Harry highlighted quite a few other stocks on Charts of the Day today. They are Aruba Networks, Inc. (ARUN), Amtech Systems Inc. (ASYS), Biovail Corporation (BVF), DigitalGlobe, Inc. (DGI), Gran Tierra Energy, Inc. (GTE), JinkoSolar Holding Co., Ltd. (JKS), MIPS Technologies Inc. (MIPS), McMoRan Exploration Co. (MMR), Medicis Pharmaceutical Corp. (MRX), Nanometrics Incorporated (NANO), NN Inc. (NNBR), Netezza Corporation (NZ), Polypore International Inc. (PPO), Rare Element Resources Ltd. (REE), and VirnetX Holding Corp (VHC).
-
