August 27, 2008
VSAT - Nasdaq. Viasat Inc has formed a potential Pennant Up after breaking out of its base. Strong rising On Balance Volume shows the buyers well in control this stock. The profit target for the chart pattern again coincides with a gap around the 32.00 level. Volume must expand on the breakout.
August 19, 2008
TACT - Nasdaq. TransAct Technologies, Inc has formed a potential Flag Up pattern after a rapid rise in price accompanied by four high volume days. The height of the chart pattern allows one to measure a profit target for the trade, in this case around the 17.75. Coincidentally there is a gap to be filled at around that level so could get interesting. As with any chart pattern, volume must expand again on the breakout to complete the formation.
August 17, 2008
ILMN - Nasdaq. Illumina, Inc has formed a Darvas Box at a brand new high. The stock is rising in price and continues to trend well. On-balance volume is rising and now gaining strength showing the buyers well in control. A breakout of the top of the box would signal an entry into this stock. A stop loss should be placed around the 85.50 to protect the position once filled.
August 8, 2008
STEI - Nasdaq. Stewart Enterprises, Inc. has formed a Darvas Box after breaking some long resistance dating back a number of years. Rising on-balance volume and recent volume activity suggest the buyers are very interested in this stock. Using the Darvas Method, a breakout of the top of the box would signal a technical entry into this stock. A protective stop loss should be placed with the broker just below the 8.50 low to protect the position.
