Charts of the Week, Monday March 12th, 2007
Charts of the Week are stocks that appear to be attractive candidates for short- to intermediate-term (2-6 weeks) returns based on analysis of their daily or weekly chart formations and underlying technicals. Support levels may be used as possible stops.
Analysis: XIDE: This we're reviewing previously highlighted stocks, because all appears to be at key support levels and have pulled back on low volume and look intriguing here. We're not going to add any to our model portfolio at Monday's open but rather monitor them closely for potential entries. Strict attention should be paid to stop levels, since a market break could trigger a break in support for any or all of these. The first is XIDE. We highlighted this in January and it moved quickly about 40%. Over the last 2-3 weeks the stock has pulled back to price and moving average support with underlying technical holdings up very well. Provided we don't get a dramatic market break this stock may do well. A move over 7.65 or so on any kind of volume surge could get it going for a retest of resistance up above 9. Trading targets, once above the 9 area, would be 10 ,, 12
Analysis: DMRC: As seen from the daily chart Digimarc shares broke out in early Feb when we first highlighted it. It worked its away from around the 10 area to 12 ,, a gain of 25%, but since then has backed off on low volume, with underlying technicals holding up very well, similar to XIDE. The stock has also backed to near price support and its rising 40-day moving average, on low volume, so we're anticipating the potential that it may hold somewhere in this zone. With a current falling wedge-type pattern, which is bullish, we expect the stock, again provided the market holds together, could work its way up across resistance around the 11-11
Analysis: MDLK: Medialink is a stock I like very much fundamentally. Technically I've been concerned about the recent action, although the pullback in the last 4 weeks has been orderly, and has held for the last 7-8 trading days at key long-term support around the 5.25-.40. That's also the bottom of the intermediate, 6-month uptrend channel. So we're hopeful that again, like with other picks this week, that the current pullback, which is testing key support, will hold. The stock needs to get over the 6.20-.50 zone any kind of volume surge to have a chance of advancing further, retesting the highs around 7.80 and then making it to our secondary trading target around 9-9
Analysis: ONXX: Onyx had a tremendous breakaway gap in February. It then pulled back in a two-week flag pattern on low volume with underlying technicals holding up extremely well despite a 6-point pullback. Only last week did the stock firm out of that pattern and begin to climb. We're not seeing the volume we want yet, but are keeping an eye on this for a breakout over the 26 , zone, which could get it moving again for a retest of the highs and perhaps higher. Targets remain at 29 ,, 35 and then the 43-44 zone longer-term. Short-term support is at the 43 , area.
Analysis: REFR: We highlighted Research Frontiers on the high-volume breakout in early February. The stock then ran hard from the 6-7 zone to over 12, reaching as high as 12.33. For the last 2 , weeks or so we've seen the stock pull back in an orderly down-channel, with decreasing volume and the technicals holding up very well. The action is similar to several other stocks we've talked about today that we previously highlighted. Short-term support is at the recent low around 8
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