sharesmadeeasy

TSYS - Nasdaq.  TeleCommunication Systems, Inc.  Strong, rising OBV shows healthy accumulation in this stock.  We now have a Darvas Box at a brand new high.  Top of the box = 8.91; Bottom of box = 7.78.  Using the Darvas Method we can place a buy stop order at 8.92 to purchase the stock on the breakout of the box.  At the same time, we place a protective stop loss order with the broker, a tick or two below the bottom of the box and trail this up as the trade progresses.

PALM - Nasdaq.  Palm, Inc.  This stock has formed a tight Pennant Up following two or three days of expanding volume.  Volume has since dried up while OBV remains rising, indicating buyer control.  Using technical analysis, we can measure the height of the flagpole to be 1.71.  Adding this to the likely point of breakout (around 3.20) allows us to calculate a profit target of 4.91 for this chart pattern.  A likely opportunity for the quick trader.

CWT, VRX - NYSE.  California Water Services Group and Valeant Pharmaceuticals Intl.  These stocks have formed Darvas Boxes at new yearly highs.  Recent increase in trading volume and strong, rising OBV suggests buyers are accumulating stock.  A breakout of box would signal technical entry for Darvas trades in either stock.

CWT - Darvas Box parameters: 46.44/42.85

VRX - Darvas Box parameters: 23.28/20.37

PCLN - Nasdaq.  Priceline.com Inc.  This stock has formed a possible Cup and Handle bottom.  On Balance Volume (OBV) is begining to rise, suggesting the buyers are coming back and taking control over from the sellers.  A resistance of around the $71 level, if broken, would signal a technical entry into this stock.  The profit target for this chart pattern can be measured to be around $95.  This can be calculated by adding the depth of the formation ($24) to the resistance ($71).  As with any chart pattern, an increase in volume must accompany a decisive breakout to complete the formation.

AIPC - Nasdaq.  American Italian Pasta Co.  This stock has formed a tight flag up chart pattern following a breaout on large volume expansion.  On Balance Volume is rising indicating that the buyers are firmly in control here.  Using technical analysis, we can measure the profit target for this chart pattern to be around $30.  An ideal opportunity for the short term trader.

STZ - NYSE.  Constellation Brands, Inc.  This stock has formed a Saucer or Rounding Bottom following a prolonged fall in price.  Since the recent lows around the $10 level, we’ve had a dramatic change in the overall market sentiment.  Strong rising OBV tells us the buyers have come back to resume control of the stock price from the sellers.  Technical analysis of this chart pattern suggests a profit target around the $20.00 level.

MLM - NYSE.  Martin Marietta Materials Inc has formed a Flag Up chart pattern following two days of strong price rise on expanded volume.  The volume has dried up in the past week while the price has formed a tight sloping parallelogram.  On balance Volume (OBV) is rising showing the buyers are in control.  Using technical analysis, a target price for the pattern can be measured to be around $124.  A breakout above $100 would constitute a technical entry for the short term trader looking for a quick trade.

ASEI - Nasdaq.  American Science and Engineering, Inc.  has formed a Darvas Box at a new yearly high.  Volume and OBV are rising showing the buyers in control of the stock.  A breakout of the top of the box at 77.05 would signal a technical entry.  Protective stoploss should be placed according to the Darvas trading method, just below the bottom of the box, in this case just below 70.00.

FE - NYSE.  Firstenergy Corp.  This stock has formed a potential Ascending Triangle bottom.  This type of chart pattern can lead to a reversal of down trend.  There is an obvious change of sentiment after the 10/10/2008 low and this can be seen in the rising On Balance Volume - the buyers have come back and are attempting to resume control of the stock’s price from the bears.  This pattern has a height of about $18 which when added to the resistance around $59 gives a measurable target price of $77.  Buying the breakout of resistance may suit the short term trader.

TMTA - Nasdaq.  Transmeta Corp has formed a Darvas Box at a new yearly high.  The recent volume spike followed by strong On-Balance Volume and rising volume suggests that the buyers are accumulating this stock.  A breakout above the top of the box would signal a technical entry for the short or medium term trader.