Sunday, December 30, 2012

4 charts challenging resistance

Today's charts to watch feature four stocks that are pressing against key resistance levels, a break of which could accelerate prices.

Arena Pharmaceuticals, Inc. ARNA has been in a rising triangle pattern for the last two months, and appears poised to break out above the resistance line at the $9.50 level. The stock, which broke out from the $2 level in April to nearly $12 at the start of July, may resume the uptrend after selling off sharply from its high.

Targets are $9.91, and then $11 should a breakout occur.

Canadian Pacific Railway Limited CP is up against resistance at its rising tops line, and appears ready to accelerate higher. The stock, up 97 cents to $89.68 on Monday, is at a new 52-week high, continuing its uptrend from the $45 level in September of last year.

Targets on a breakout would be $91.19 and then $93.70, with a stop loss below the low of its recent flag at around $88.

McKesson Corporation MCK broke out of its flag on Monday, with a gain of $1.60 to $90.88. The breakout puts the stock up against its rising tops line from August. Target is $93.00.

SeaChange International Inc. SEAC has been in a steeply rising triangle pattern since its July low. The stock, up 33 cents to $8.63 on Monday, is pressed against its horizontal resistance line that has twice contained prices in this area in the last two months.

A breakout would lead to our short-term target close to $9.00.

See charts illustrating the technical patterns on these stocks.

No comments :

Post a Comment