CIE, MITK, GMC, ROST Among Charts to Watch
Posted on December 05, 2012 at 23:47 PM EST
The market was firm, then choppy, and then ended up closing mixed on the session. Apple Inc. (AAPL) had an upset of 37 points that pulled the NDX down. Nevertheless, the market survived. Cobalt International Energy, Inc. (CIE) had a strong move as they announced the oil discovery and some positive developments in the oil industry, also, with mergers of a couple firms that set this one up for a potential takeover. The major declining topsline has edged through the last couple days, and today it gapped big, and on the news, it closed at the upper end of the range, up 4.43 to 28.21, or 18.6%, on 7 million shares traded, the biggest volume since August. It’s right up against key overhead resistance now. The lateral line has been tested, the base is completed, multiple test of the 20 area have held, the wedge is broken, flags have formed, moving averages have crossed over and moved up, and on Wednesday, it spiked up. Any consolidation in this range can be construed as a possibility for a much stronger move into the low 30's, and then the mid 30’s. Mitek Systems Inc. (MITK) had a big move on Wednesday. We have been following this stock for a couple years. The 3 1/2-month declining channel was broken, as was the 10-, 21- and 50-day moving averages, lateral and secondary resistance. It popped 82 cents to 3.22, or 34%, on 2 million shares, the biggest volume since June. It’s significant, because if it does follow through, it could move up towards 4-4 1/4 short-term, and then up toward 5 on an intermediate basis. On the Short Side… Chipotle Mexican Grill, Inc. (CMG) is on the short list, so we’re back to keeping an eye on this one. It has broken down twice and looks like it has one more to go. It appears that a large wedge is forming, and if the wedge gets broken and takes out 254, or so, it could fall precipitously to 230, and then 210. Ross Stores Inc. (ROST) has been ugly of late. It has a rising wedge right at resistance, which broke in the last few days and has been coming down. It was only down 6 cents on Wednesday, but if it comes down further, we may see a test at the 52 1/2 range short-term, and longer-term down around 48. Other stocks on Harry’s Charts of the Day are Alpha Natural Resources, Inc. (ANR), Bank of America Corporation (BAC), Cyclacel Pharmaceuticals, Inc. (CYCC), First Solar, Inc. (FSLR), Green Mountain Coffee Roasters Inc. (GMCR), InterDigital, Inc. (IDCC), Research In Motion Limited (RIMM), Sanmina Corporation (SANM), SeaChange International Inc. (SEAC). Stocks on the short side include Atlas Air Worldwide Holdings Inc. (AAWW), Chipotle Mexican Grill, Inc. (CMG), Diebold, Incorporated (DBD), Chart Industries Inc. (GTLS), Pharmacyclics Inc. (PCYC), and Acacia Research Corporation (ACTG).
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