LNG, SBUX, ALGN, CNW Among Charts to Watch
Posted on December 07, 2012 at 08:43 AM EST
The stock market had an interesting day on Thursday, closing in the plus column. It was choppy but the day ended near the highs, so we’re going over both longs and shorts here. Cheniere Energy, Inc. (LNG) had a nice day. It has a large narrowing coil the last 8-10 months, and at this point, a slow steady move up in the last 3-4 weeks has taken this stock from under 14 to 18. It moved across 3 moving averages, and on Thursday, across the line of resistance at the high end of the day going away, up 1.23, or 7.3%, on 12.6 million shares. That’s the biggest volume since September. This is an important move that will be testing the highs, maybe as early as Friday. The overall pattern indicates a possibility of it moving up towards 24-28 both short- and intermediate-term. Nevertheless, it looks very intriguing for more upside. Starbucks Corporation (SBUX) had a nice day on Thursday. After breaking the declining topsline and coming back to retest, it bounced up to resistance. It backed off one more time, and on Thursday, it exploded 2.91 to 53.70, or 5.7%, on 25 million shares. That was the second biggest volume in about three months. The key here was that it broke out across the line of resistance, and may be headed up towards 56 short-term. If it gets through that, look for something up around 60 intermediate-term. Stocks on the Short Side… Align Technology Inc. (ALGN) had a big hit on Thursday morning and came back and closed down 50 cents to 25.64 after being down 2.50. It broke key support and looks like there’s more down side on this one. Look for something down around 21. Con-way Inc. (CNW) has been on our short list for many months. After the wedge and flag were broken, this stock ran right back up to the declining topsline and rolled over. It just appears that there’s a possibility this could come down towards 24 1/2-25 short-term, and then down to the low 20’s. Other stocks on Harry’s Charts of the Day included Cobalt International Energy, Inc. (CIE), Caesars Entertainment Corporation (CZR), Metabolix, Inc. (MBLX), Mitek Systems Inc. (MITK), and Smith & Wesson Holding Corporation (SWHC). Stocks on the short side include Atlas Air Worldwide Holdings Inc. (AAWW), Chipotle Mexican Grill, Inc. (CMG), Diebold, Incorporated (DBD), Hibbett Sports, Inc. (HIBB), Mellanox Technologies, Ltd. (MLNX), and Ross Stores Inc. (ROST).