Charts of the Week, Monday November 20th, 2006
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: GRRF: This week we feature four foreign Chinese and other East Asian stocks and highlight their recent very bullish action. We'll elect not to go in at the opening on Monday, but will monitor them carefully. The first one is China GrenTech. It began trading on Nasdaq in March of this year. At that time it had a nasty decline from 22 , to about 8
Analysis: GMKT: The Korean equivalent of eBay, the company has experienced rapid growth and started trading on Nasdaq in late June. The stock pulled back and based out for several months before breaking out in mid-October. But the real move came in November when the stock had a high-volume breakaway price surge, which extended last week as the stock moved from around the 19 to the 25 zone. But there may be quite of bit of price performance ahead, and we like this one for trading targets of 28, 35 and 40-42, short-, intermediate-, and longer-term. Short-term support at 22
Analysis: HMIN: This is one of the fastest growing lodging chains in China, and recently went public, listed in October, just 17 days ago. Since then it has surged about 50% in price. As a result of the limited price data, we're showing you a 15-minute chart going back since the stock started trading. As you can see a steady uptrend has ensued, and the stock looks higher. We'll set targets at 34, 38 and 44-45, short-, intermediate-, and longer-term, with trendline support at 29 ,, price support at 28 ,, and beneath that additional support at 27.40.
Analysis: JST: This manufacturer of transformers exhibits a very bullish price trend. This one has been around a while, and has at least 8 years of price history. After a big run-up in 2003, the stock based out for three years, culminating in a breakout of key overhead resistance in August. It consolidated in September and through October, and then had another move to new all-time highs in October before consolidation ensued. However, last Friday the stock exploded for 4.65 on very heavy volume to new all-time high territory, and if calculations are correct this one could have a dramatic move. Its low float and thin trading make it very volatile, so caution should be urged, and a consolidation or pullback would be an opportunity to add to it, but this one could fly. Targets are short-term 22, intermediate-term 29, and longer-term in the mid-to-high 30s. Short-term support at Friday morning's opening gap around the 15 zone, and beneath that at 12 ,.
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