We'll be covering some ideas on the long side today, some stocks that are looking good and appear to be emerging.
ADTRAN Inc. (ADTN) has been in a nice rising channel, like most stocks since the end of 2008, when it was trading around 12. This stock reached near the 30 level in April, backed off, came on again, and now today had a price breakaway gap, a surge that took it up 2.38, or 8.25%, on 5.5 million shares, by far the heaviest volume this year on any one day going back several years as well. Perhaps it's an initiation of an uptrend or at least a new phase of the current uptrend. In any case, resistance around 33 1/2, my trading target up around 37.
Acme Packet, Inc. (APKT) continues to do well. It had an exceptional day today jumping out of its consolidation range out across key resistance at around 30.65 and exploded up to 32.40, closing at 31.85, up 1.71, or 5.7%, on 2 3/4 million shares. That's the heaviest volume in about 6 weeks. Significant enough I think that Acme Packet could make it to the mid-30s short-term, intermediate-term up in the low 40s.
Applied Signal Technology, Inc. (APSG), which we featured a couple times, continues to trade low volume, but built a beautiful technical pattern after a big down trend. The stock dropped from 27 down to 17, built a base out over the last several months, popped a week and a half ago, formed a flag, and then broke out of that flag today. It gained another 27 cents on low volume. But it appears that a new trend in on its way as lateral price resistance has been taken out. There is some additional price resistance just above there in the 21 1/4 range, but I have the trading target at 24 1/2 – 25, the Sept – Oct 2009 highs.
Star Scientific, Inc. (CIGX), which had a big run we participated in February and March, then came down from the 3.69 area to near 1. It’s been basing out over the last several months, and today late in the day it surged on 2.4 million shares, the heaviest volume in about 3 weeks, and ran up to near overhead resistance around 1.95. If that line is taken out, and I'm anticipating it will be, I’m looking for a run that takes this back up to test the 2.93 zone, maybe as high as 3.50-.60, which are our two trading targets going forward.
