Charts of the Week, Monday December 18th, 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: ACH: The second largest aluminum company in the world with $6 billion in revenue and $1.3 billion in net income, this is a world class corporation just coming into its own. Recent action last week on heavy volume broke the stock out to 7-month highs and may have triggered an intermediate move. My trading targets are 24 ,, 28 and then 32, short-, intermediate- and longer-term. Short-term support is around the 18 ,-19 zone.
Analysis: NMGC: This is a stock we highlighted about a year ago. After a short run-up it went into a prolonged decline, dropping from under 11 to around 2 ,. The June-Sept period was spent basing. A breakout of the 9-month down-channel occurred in early October, and the stock stair-stepped up after several flagging opportunities. The stock is now in a rising flag and looks ready to break a key overhead resistance level around 6 3/4. If that occurs, I expect the stock to move back up initially to around the 8 level, my initial trading target. Secondary target is up near the 11 area, the January high, and then longer-term target is up around the 17 zone. Short-term support exists around 5
Analysis: CLWT: This Chinese-based pollution control company has been basing out for the last 2 , years, and on several occasions reached as high as the 7-7
Analysis: GSOL: This is another Chinese company doing international trade. After a beautiful 18-month base pattern the stock broke out in November, pulled back and retested the moving average, and then exploded on a breakaway gap on heavy volume. The last couple days it's pulled back, and we view the stock as entering a buying zone. Initial trading target at 20 , area, secondary target at 25, and longer-term targets at 30-32. Short-term support at the recent gap at around the 15 , area, and beneath that at around the moving averages in the 14 zone. This one looks powerful, and may have triggered a solid intermediate move recently, and we're looking for higher prices.
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