DSW Inc. (DSW), Designer Shoe Warehouse, has been in a beautiful rising channel, but over the past six weeks it’s consolidated in a suddenly declining line. Over the last two days it’s snapped back smartly if you’re holding the 50-day moving average and the rising channel bottom. Today’s action up 1.10 on 419,000 shares, the heaviest volume in about six sessions. It could be the beginning of a break out. If it takes out the declining topsline over the next day or so, you could see this stock accelerate to the high 20s. My trading target on this if it does take out the 27.44 range at the December high, would be somewhere up around the 32 zone towards the top of the channel.
McMoran Exploration (MMR), similar pattern, break out, price volume surge, pennant, breaking out of the pennant. This is a 20-dollar stock in my mind. That’s what I’ll be looking for short-term.
Momenta Pharmaceuticals (MNTA), big beautiful base pattern over the course of the last year, was broken December followed by a nice beautiful bull flag, a secondary surge, another bull flag, and today the stock jumped 52 cents moving out of the flag with a nice move in the technicals with new highs in the last year as well.
Skechers (SKX), which is one my favorite stocks on the Fab 40 list, in a beautiful rising channel all year, has gone from 5.00 to 30+, pulled back over the last two and a half weeks in a beautiful coil, or should I say an orderly down channel or flag, and then held the 50-day moving average, popped 1.90 today on over a million shares. That’s the heaviest volume in a few weeks. This could be initiating a new trend or leg that takes this potentially up towards the high 30s maybe even 40s.
Other stocks to view on the chart are Compugen (CGEN), Conexant Systems (CNXT), Callon Petroluem (CPE), Eastman Kodak (EK), ev3 (EVVV), FSI International (FSII), Hollysys Automation Technologie (HOLI), Interactive Data CP (IDC), MAP Pharmaceuticals (MAPP), Pharmacyclics (PCYC), Select Comfort (SCSS), Valassis Communication (VCI).
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