sharesmadeeasy

TSYS - Nasdaq.  TeleCommunication Systems, Inc has formed a Darvas Box at a new yearly high.  The stock is rising in price and beginning to trend well.  The large expansion in volume in late June plus increasing volume activity over the past few weeks suggests the buyers are very interested in this stock.  A breakout of the top of the box would signal a technical entry into this stock.

DSPG - Nasdaq.  DSP Group, Inc has formed a potential Head & Shoulder Bottom.  The On Balance Volume is rising, telling us that the buyers are coming back and resuming control of the share price.  The Head and Shoulders Bottom is a chart pattern that can signal the end of a downtrend.  Volume will have to sufficiently expand on the break of the neckline, if a successful trend reversal is to take place. 

TA - Amex.  TravelCenters of America LLC.  Another good example of a stock that has crashed from it’s ivory highs and now formed a very good base.  The On Balance Volume indicator is strong and rising telling us that the buyers are accumulating the stock.  Breakouts from formations such as this are known to produce large scale moves to the upside. 

NBIX - Nasdaq.  Neurocrine Biosciences, Inc.  After being smashed from it’s highs in the 70’s, this stock has bottomed out and formed a nice horizontal channel. On Balance Volume is begining to rise showing a sign of accumulation.  A breakout of the 6.00 resistance would signal a technical entry into NBIX.  The closure of the gap around the 10.00 level would be an ideal profit target for this trade.

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.

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.

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.

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.

CXW - Nyse.  Corrections Corp of America.  For the past year, CXW has formed a resistance with prices moving lower while the on-balance volume (OBV) indicator is rising.  Divergence between price and volume can give a clue to future price movement.   A breakout of this resistance could interest traders looking for a stock to hold for the long term.

COT - Nyse.  Cott Corp.  There’s a number of ways to make money in the stock market.  One is to buy cheap and sell dear.  If you’re going to buy cheap, make sure your stock has formed some sort of a bottom and is beginning to turn around, preferably attempting to break resistance of at least a few months.  Volume and on-balance volume must be rising to show that the buying pressure has resumed. 

COT would fit such a category.  Here we have a stock that’s been sold off from around $33 four years ago to below $2 after the final smash in late Feb 08.  Since March this year, we’ve had a large change in volume and OBV has been rising ever since.  A nice medium term resistance has also emerged.  A breakout of this resistance could interest traders looking to take profit around the 5.50 level.