Yesterday I highlighted a cup with handle breakout in Iconix Brands (ICON) and today I’ve got another cup with handle breakout for you in PRGX. While this is an excellent looking base showing significant demand and profit opportunity it should be noted that it isn’t a high quality company like Iconix is. This is a trade and nothing more. I’ve initiated a small position in this myself and am looking for a quick 15 – 20% gain over the next couple weeks.
Cup with handle breakouts can often be successful chart patterns in a bullish market and today I highlight a breakout from a cup with handle base in Iconix Brand Group (ICON). It’s long been a highly rated retailer in my database and today it broke out from the downward trend of the handle formation with heavy volume and went on to briefly touch all time highs before pulling back. The stock is currently continuing to digest gains and looks poised to begin moving again soon.
Today I highlight a trade in a low priced stock which won’t be typical but I think the company is interesting enough and the chart bullish enough to warrant a mention. The company is Tucows.com and they are probably one of the the largest owners of virtual real estate (ie. domain names) in addition to providing internet services and downloadable software. Of the past several weeks, buyers have been stepping in with increasing vigor pusing the stock to its current levels which is right around resistance of the March 2005 highs. With the stock breaking out of a bullish triangle pattern today with volume that will come in at roughly 5x the daily average, it looks poised to ultimately break through to new multi year highs above 1.32.
Here’s a shorter term view:
..and the longer term view
Unless you’ve been living where the sun don’t shine you’ve probably been aware of the surge in solar over the past year, particularly in the last few weeks. Many have run up way past a buyable range but there are still trading opportunities out there in this space – one is in Daystar Technologies (DSTI). No, this company is not a leader in the solar space and not meant for a longer term hold. I’m just highlighting a trading opportunity which could potentially offer explosive profits over the next few weeks. Let’s have a look at the chart:
I’ve been highlighting flat bases in past Trade of the Day posts but these bullish triangle formations probably come in at a close second on the favorite chart setups list. As I write this DSTI is in the process of busting out of this formation with heavy volume. It should be noted there is significant short term resistance around 7.50 so it may have trouble in this area. If it can break through this level as well it could run awhile.
Another day, another flat base breakout! You’ll see me feature these kinds of breakouts here quite a bit because in my opinion they are one of the best formations around – clearly defined support and resistance levels with a high success rate. I featured flat base breakouts in MPWR and ENR in the past 2 days and today I highlight a breakout in Banco Itau (ITU). Foreign banks have been moving of late and ITU is no exception. Today, it breaks of a well formed flat base to a new all time high. I do no own this stock currently but may consider a position on a bit of a pull back. While at the top of a buyable range, I prefer to get into position very close to the breakout point. Why not wait for perfect entries when there are so many great trade candidates?
Today I highlight another flat base breakout to go along with yesterday’s Monolithic Power (MPWR) which continues to break out nicely. The stock is Energizer Holdings (ENR) and it’s staging a big breakout off support of the 50 day moving average and above a well constructed flat base at 102.10 with a buyable range of 102.10 to 107.20. I would look to get in at 104 or lower. The stock has run up big as I write this and is due for some kind of pull back intraday.
I’m adding a new feature here at the blog called Trade of the Day. Every day I’ll try and post a trade of the day which will highlight a technical trade (not necessarily a company with great fundamentals) which has the potential for an explosive move over a short time period. Today’s stocks is Monolithic Power Systems (MPWR) which is breaking out from a flat base this morning.
Full Disclosure: I have purchased shares in this stock this morning.