14/10/2007

Stock candidates

Now let's look at the charts, to get some trading ideas for upcoming week.

	BBIDEVNFI has made a sharp bottom after a major downside move. Now we have an interesting situation, which indicates bullishness in this case. The price is forming a symetrical triangle, which is a continuation pattern after a massive rally on increasing volume (confirmation of mentioned bottom). Now the trading activity is definitely lighter than previously, but this is how the trend develops. Breaking and staying above 2,00 will confirm strength of the bulls.
	BUDOPOL is still recovering from the summer decline, but recent price patterns already have indicated, that there is a potential of going higher. We have this rectangle pattern between 5,50 and 6,80 and earlier confirmation of a local bottom (proved by a bear trap). Breaking above the upper rectangle band will give us an upside target of 8,10 - measured by the rectangle's range.
	ECARD has finally broken through its recent high, which is a confirmation of a classic 1-2-3 bottom reversal pattern, shown on the chart. Now that previous resistance has become a support, the buyers started to get more aggressive, which can drive the price up to 2,25 in the short term. This is the nearest possible target, indicated by measured move (1-2 wave added to 3).
	FASING confirmed 1-2-3 bottom reversal by staying above the prior resistance level. Recently the price pulled back slightly on diminishing volume after reaching the measured move target of 32,85. The situation will get probably more bullish if the buyers manage to drive the price above this recent high. After that, expect to see a retest of the all-time highs.
	HOOP is one of the low liquid stocks to trade, nevertheless the price action shows potential for getting above the all-time highs. It posted a significant bear trap, confirming a local bottom, after sharp decline during the summer correction. Since then, the stock has been showing a pattern of higher lows, indicating that the buyers are getting more aggressive. On friday, HOOP retested its all-time highs and I think it is ready to break through this global level of resistance. Conservative upside target will probably be indicated by duplicating the rectangle range.
	HYGIENIKA has been consolidating since couple of weeks, but that might be considered as a double bottom pattern, which indicates a reversal of prior downtrend. Now it's formed a pennant just below the local resistance suggesting a continuation. Again, in this case, the conservative price target would be twice the rectangle's range, but only if the price breaks above the upper band.
	INGBSK looks similar to BBIDEVNFI. Sharp bottom, a rally, a symetrical triangle - combine these and get a good reason to be involved with a long position. Beware of large betsize, because of low liquidity in this one. Breaking the upper band of triangle will confirm the whole pattern and drive the price up to its all-time highs.
	MMPPL also posted a sharp bottom pattern, and it's been recently consolidating in a range. Breaking above the upper rectangle band will give us a conservative target of 13,70 (then goes the measured move).
	PGNIG broke above its all-time highs on friday, which occured on an increasing volume after showing a pattern of higher lows. Now I suggest to wait for a pullback, confirming that the price is going to stay above its prior level of resistance. The nearest target will probably be taken by measuring the move from the first low to 5,50 (the last high before the breakthrough) and adding it to the second higher low (shown on the chart).
	PROKOM posted 1-2-3 bottom reversal and right now is staying above its prior resistance level. The pullback occurred on a diminishing volume, so there is definitely a potential for going further upwards. My only concern is that the nearest level of resistance will probably be near 150,00 (prior support), which gives a low risk-reward ratio. Pick your timeframe and then get involved if you manage to find RR, that will suit your trading strategy.
	STORMM looks similar to HYGIENIKA, although it's formed a bullish flag instead of pennant, which is actually a better confirmation in my experience. Breaking above 14,00 will give us an upside target of 18,00, which is the all-time high.
	TRANSINTUR posted a sharp bottom, rallied and formed symetrical triangle, suggesting continuation. Breaking above the upper band of that triangle will give us an upside target of 4,40 (from a measured move).
	WILBO - Breaking above 4,50 will confirm 1-2-3 bottom reversal.