It was a great day on Wall Street on Monday, with good technicals, good volume, and a great follow-through to Friday’s reversal day. It is certainly getting overbought short-term, and it’s up at plus 160 on the Mcclellan Oscillator. Although that can get to 220-250, it’s getting up in that range where we must be careful of a pullback consolidation. Let’s take a look at some of the stronger-looking stocks that are either breaking out or breaking through declining topsline, trend lines, and moving averages.
ConocoPhillips (COP) is one of the better and bigger oil companies, up 1.79 to 52.98, or 3.5%, on 12.8 million shares on Monday. It has gone from the high 80’s to the low 40’s. Over the last couple months it’s had a spike down, run-up, pullback, and a retest right next to the extended-V pattern. Five days in a row up, it takes out the moving averages and channel-bottom resistance. It looks like it may want to extend its run all the way up to 50-60. A pullback towards the prior high at 51 would be a good entry opportunity.
EPAM Systems, Inc. (EPAM) had a nice pop on Monday, up 2.81 to 78.45, or 3.7%, on over 1 million shares traded. The long-term chart is impeccable. It did have a pullback like many of the other stocks did recently, only to tag the trendline twice, held it, moved up to test, and broke out on Monday. Going forward the target is 85.
Intel Corportation (INTC) had a good day on Monday, up 70 cents to 31.21, or 2.3%, on 34 million shares. After a massive-top formation, and a strong surge downward from 35 to 25, it formed an inverse head-and-shoulder pattern, and in the last couple days it surged from 29 1/2 to 31.25-.38. At this point, look for a test of 32 1/2, and then 34 1/2-3/4 going forward.
Oasis Petroleum Inc. (OAS) is one of the better-looking junior oil companies. It was up 1.00 to 11.73, or 9.3%, on 12.7 million shares. The base pattern may have been broken on Monday. If so, then it might have an extension follow-through. If that's the case, then the targets are 14, 16, and 17 1/2.
Other stocks on the long side include Alcoa Inc. (AA), Autobytel Inc. (ABTL), Global Brass and Copper Holdings, Inc. (BRSS), Boyd Gaming Corporation (BYD), Calithera Biosciences, Inc. (CALA), Matador Resources Company (MTDR), Micron Technology, Inc. (MU), Natural Health Trends Corp. (NHTC), Market Vectors Semiconductor ETF (SMH), Smith & Wesson Holding Corporation (SWHC), TransAct Technologies Incorporated (TACT), Trina Solar Limited (TSL), and Whiting Petroleum Corp. (WLL).