Charts of the Week, Monday January 29th, 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: MDLK: This is a stock we added to our portfolio this week. Shown here on a weekly basis going back the last 8-9 years, a long 6-year base had formed after the drop from the 1998 high near 30 down to something just off 2. But a high-volume thrust broke out above key long-term resistance around the 5.40-.50 zone, and now the stock has approached additional overhead resistance around 7 ,. However, we believe a long-term trend has been initiated that should take the stock to higher levels. We'll be targeting 9 1/2 , 14 and 22 short-, intermediate- and long-term. Even though the stock is short-term extended, having moved from about 2
Analysis: INPC: This is a stock we highlighted in November but exited when it deteriorated in December. But it did manage to hold around its 40-day moving average and the bottom of its up-channel as well as the big gap it had in Nov at which the volume-price thrust initiated a new trend. Since then the stock has broken out, consolidated, and then run hard last week, taking out a very key resistance level around 12 ,. So this stock looks like its uptrend has been resurrected and that it has re-established a very nice pattern that is underway that indicates higher prices. We will repeat our earlier targets believing that they can still be reached. The 17 level is initial trading target, secondary-intermediate target around 22 and longer-term target around 28. Current short-term support and a level we'd like to re-enter would be any pullback to about the 12 ,-3/4 zone, particularly on low volume.
Analysis: CKSW: This is another issue we entered late last year but exited in December. Apparently that was a mistake because the stock did manage to hold around its 40 day moving average and at the bottom of its major intermediate up-channel, and late last week, on Friday in particular, surged to new nearly 3-year highs. Our trading targets are at 5, 7 , and 9
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