KTCC, SZYM, LRN, GDI Among Charts to Watch
Posted on February 28, 2012 at 23:17 PM EST
Although the market ended positive on the day, we’re going to cover both longs and shorts, starting off with the longs. Key Tronic Corporation (KTCC) has an absolutely phenomenal pattern, great volume at the break away gap and through resistance. It formed a little flag, popped, flagged again, had a 3-day move up, a 3-day pullback, and on Tuesday, it popped 1.00 to 11.40, or 9.6%. The volume wasn’t huge, but if it does follow-through, it’s going to be significant. It has a massive head-and-shoulders that can support a big move. The short-term target is set at 15, and intermediate target at 18. Solazyme, Inc. (SZYM), with a breakaway move on Tuesday, had the biggest volume in 3 months. We put a swing trade out on it, because this stock may see the 17 – 18 zone. It was up 1.21 to 14.34, or nearly 10%, on over 1 million shares traded on Tuesday. We’ll have to see if it has any follow-through in the next few days. The Short Side K12 Inc. (LRN) has been in a down channel since last August, and has gone from 38 all the way down to 13, it moved back up, but with low volume and poor technicals, it started to rollover, and came down hard a couple weeks ago. It’s plat-forming right now, but if it cracks around the 20 – 20 3/4 level, it could rollover and test the lows around 17 again. That’s what to be watching for at this point on this stock. Gardner Denver, Inc. (GDI), one of our Boxer Shorts that was put out as a swing trade, has a head-and-shoulders that broke, it snapped back, broke out again, and then formed a bear coil. If this breaks to the downside, expect a test quickly around the 68 1/2 – 69 level, but that could send it down to the low- to mid-60’s. Other stocks in our Charts for the Day are Office Depot, Inc. (ODP), Almaden Minerals, Ltd. (AAU), Magal Security Systems (MAGS), Youku.com Inc (YOKU), ZAGG Inc (ZAGG), Endeavor International Corporation (END), SodaStream International Ltd. (SODA), Achillion Pharmaceuticals, Inc. (ACHN). Stocks on the short side include RealPage, Inc. (RP), Carbo Ceramics, Inc. (CRR), OPNET Technologies Inc. (OPNT), World Acceptance Corporation (WRLD), Chunghwa Telecom (CHT), Deckers Outdoor Corp. (DECK), Carnival Corporation (CCL).
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