The stock market had a tough session on Tuesday. Although there were many shorts, we’re going to take a look at some of the better looking longs and some of the patterns that have developed.
Cree, Inc. (CREE) is really acting well of late after a long down trend. It dropped all the way from 83 and change, down to the low 20’s. It snapped back to the low 30’s, tested the double bottom, and moved up in choppy fashion. The overall pattern is a nice basing pattern. On Tuesday, this stock popped 1.09, or 3.4%, on 2.8 million shares. Although it didn’t close extremely well, it did move up across key resistance. All is well for more upside. Look for a test up around the 2011 highs at 36.64. If that is taken out, this stock may get up into the low 40’s.
Facebook, Inc. (FB) has formed a nice base, after a big channel formed. Then a wedge formed, it popped out, pulled back in an orderly fashion, spurted on 230 million shares, stair-stepped its way up to resistance for 3 or 4 days, broke out on Monday, and Tuesday, it followed through. It’s up near the near-term target, and lateral resistance is filling in the gap from last Aug. It may very well pull back and consolidate. But it has good momentum, nice technicals, and at this point, it wouldn’t be surprising to see this stock make a run at 29 1/2 short-term, and possibly back up to the 32 area intermediate-term.
First Solar, Inc. (FSLR) had a good day on Tuesday, especially midday when it spiked up to key resistance. It’s in a resistance zone. It could get up to 27 1/2-3/4, and it very well may move into the low 30’s short-term and the high 30’s intermediate-term.
Green Mountain Coffee Roasters Inc. (GMCR) was basing beautifully before Tuesday’s earning release. The major topsline has been tested. The channel was pierced in after hours and it exploded into the 36 area before backing off. It popped 34 cents to 28.95, or 1.19%, on 163 million shares. Wednesday should be a big day for this stock, and it wouldn’t be surprising if it reached 39 on Wednesday. But even if it gets up only a few points, it will break out above the Sept high at 33 and change.
Other stocks on Harry’s Charts of the Day are Apogee Enterprises, Inc. (APOG), Cray Inc. (CRAY), Immersion Corporation (IMMR), Medifast Inc. (MED), OfficeMax Incorporated (OMX), and Smith & Wesson Holding Corporation (SWHC).