Charts of the Week, Monday February 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: ROCM: Rochester Medical is a stock we've been following for a few weeks. At this point a recent pullback and bounce on heavy volume indicate to me the stock may not be done and has strong upside momentum right now. Underlying technicals are very strong, and despite the fact the stock's had a move in the last year and a half from 4 to just under 20, it appears that the near-term momentum is so strong that substantially higher prices could available here, and the stock could be in the latter spike-up stages of that move. Current short-term resistance is around the 18 1/4-.40 zone. Monday's high, which was up around 19 ,, before the pullback, would be secondary resistance. Once through that, targets are at 22, 27 and 35 short-, intermediate- and longer-term. Short-term support is at last week's pullback low at 15.87, which is also 21-day moving average support, and then at the 40-day moving average, which is around 14 right now.
Analysis: REFR: Over the last couple weeks the stock has had a tremendous price-volume surge breaking it out across resistance in the 6
Analysis: SVNT: This junior biotech stock reached its bear-market low in 2002, retested in2004, formed a base pattern, and broke out in the summer of 2005. It retested in the fall of 2005, and since then has been on a steady tear, having seen the stock rise from 3 to just under 16. The rise was interrupted by several months of basing in the spring and summer of 2006, but since July 2006 the stock moved from around 5 to 15 3/4. Although underlying technicals and the current four-week consolidation pattern indicate a flag has formed again, higher levels are likely, and we're looking for a trading target at the 19 area, followed by an intermediate target at 23 and longer-term target in the high 20s. Short-term support can be found at the recent pullback lows in the 14-14
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