Charts of the Week, Monday November 27th, 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: RMBS: A stock we highlighted several weeks ago that failed, drifted lower and retested support and actually slightly took out our stop level, Rambus recovered sharply on a 5-point gain about a week ago on news, and then after a flagging action had a sharp 1.71 jump last Friday on over 10 million shares, and it looks like the trend is back in force. Targets are 27, 32 and something in the 38-40 zone longer-term. Short-term support at around 19 1/2-20 and beneath that at the moving averages around 17 ,.
Analysis: STEC: A stock we highlighted as one of our stocks for the last six months of 2006, Simpletech certainly had a big percentage move since then, gaining more than 50%. The trend was interrupted with a pullback from late October through early November, but the stock rebounded sharply and is now up against overhead resistance, flagging for the last six days, looking extremely strong and ready to breakout and run to new highs. Initial trading target is at the top of the channel up around the 13 level, secondary target 17, and longer-term target 20 area. Short-term support is at the moving average around 8 ,, and beneath that at the pullback low in November at 7.35.
Analysis: JMBA: A current portfolio, it will be changing its name and relisting on Nasdaq under the name Jamba Juice with the new symbol JMBA. The stock had a big move last year when they announced that acquisition, then pulled back in a multi-month declining wedge-type pattern, which was broken in October. A pullback in early November retested the moving average successfully and created a new uptrend. The stock's then made higher highs over the last several weeks and appears to be higher. I believe that after it's listed the stock should make a run at the 12.87 May high. That would be our initial target, secondary at 15, and longer-term target in the 19-20 zone. Short-term support at 10
Analysis: CKSW: The stock is moving out of a multi-year base pattern on heavy volume and surge in technicals. Key resistance was penetrated at around the 3.30 area on Friday with the stock closing right near there. The overall volume and technical indicator pattern looks like this low-priced stock is under accumulation, with a strong intermediate uptrend underway. Once the stock takes out the 3 , area, I expect it to move to retest the early 2004 highs up around the 5-5
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