RightNow Technologies Inc. (RNOW)

RightNow Technologies Inc. is a "Technology" company which last traded at $23.68 a share. RNOW's charts are showing excellent bullish formations. First we will analyze the weekly chart for RNOW.

It can be seen that RNOW broke out of significant resistance $20.00 in early October. This breakout was accompanied by huge trading volume during the week of breakout. Subsequently RNOW maintained a bullish run till it reached $28.00 a share in late October, and then started to make an apparently short term correction. This correction continued till late December and the stock briefly reached a low of $18.80 this week. But, now I think this correction is over and the stock is ready for another bullish run.

A view at the StochRSI for RNOW (see chart above) demonstrates that the recent correction has put the stock in an oversold position, and now an upward move is long due. (For more on StochRSI read The New Technical Trader: Boost Your Profit by Plugging into the Latest Indicators (Wiley Finance)). Some other significant features of RNOW's weekly chart are:
1. The most recent low at $18.80 touched the 50 week moving average and then jumped up sharply. This clearly shows that the support provided by the moving average is pretty strong, and the  stock is unlikely to defy this support in the near future.
2. Also it can be seen from the chart above that after the breakout in October the stock made a correction on "drying up" volume. This is a very bullish signal and confirms that the stock is still in an uptrend. Also, after touching the moving average the stock jumped up on huge volume which is another bullish signal.

Now lets look at the "all data" chart for RNOW.

The above chart gives a comprehensive look at RNOW's complete trading history. It can be seen that RNOW started trading in 2004, and since then it has attempted several times to defy resistance at $20.00. All these attempts are marked with a blue circle in the chart above. However just recently in October after more than 6 years of trading the stock finally broke out of $20.00 a share (shown by green circle on chart): leaving no overhead resistance for the stock at all. This means that the stock is "lighter" now and can make rapid advances more easily.
The recent downtrend I believe is only a short term correction and the stock will be back on a bullish track in 2011.

Combining all the above mentioned factors I believe that RNOW is capable of making immense bullish moves in 2011, and can potentially give a profit of 20% to 50%. For short to medium term investors a good sell point can be the most recent high at $28.00 a share, and for long term investors the sell point can be even higher.

That's all I have for today. Don't forget to subscribe for regular feeds. Hope you have a Great New Year!

Flotek Industries Inc. (FTK)

Flotek Industries Inc. is a basic materials company. This sector is currently in a very bullish uptrend (take a look at my previous pick: Dynamic Materials Corp. for an analysis of this sector). To analyze this stock I am using an Ichimoku overlay on FTK's weekly chart as shown below.

NOTE: For details on Ichimoku Charts read Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds.

FTK closed at $4.25 a share on Tuesday, December 28th. On the chart shown above I have marked four regions where strong bullish formations are appearing.
Region 1: In early November FTK's price moved decisively above both the conversion line(blue) and the base line(red). Also, during the same week after almost 3 years of trading the stock broke above the Ichimoku cloud. This is a very bullish signal, especially if the breakout occurs after a long period as in FTK's case.
Region 2: Since the cloud is shifted 26 days, it provides a glimpse of future trends. On the chart above it can be seen that the cloud turns from red to green indicating bullish moves in the future.
Region 3: This part is really important. It can be seen that all the above mentioned technical formations were supported by huge trading volumes. High amounts of volume makes breakouts more reliable.
Region 4: Finally the sharp upward turn in the stock's RSI is a strong indication of rapid bullish progress for the stock in the future.

FTK's daily chart is also showing some interesting formations.
Notice after the most recent upward rally, the stock is now trading in a narrow symmetric trading range. A breakout above this range will mean another bullish run. While a breakdown will indicate a short term correction. So, the daily chart is also worth keeping an eye on.

To sum up I think FTK is presenting a good long term investment for a hold period of six months to two years. Good sell points can be past resistances and supports around $10.00 and $15.00. This can give a decent 100% to 200% profit.


NOTE: One of my previous picks Geeknet Inc. (GKNT) is up 25% in just over a month. This can be a good sell point for short term traders.

That's it for today. Don't forget to subscribe for regular feeds.

Dynamic Materials Corp. (BOOM)

Dynamic Materials Corp. last traded at $23.87 a share. The stock's current chart formation is flashing some classic break out signals. BOOM falls under the basic materials sector which has more than 90% stocks classified as "bullish". A look at the current chart for "$BPMATE" shows this clearly.

Therefore, it is unlikely that in the near term the stocks in this sector will establish downtrends. Sector analysis is fundamental to charting. As a rule of thumb investors should always zoom in on stocks by first performing a thorough market and sector analysis.

(NOTE: For this stock I will only analyze the weekly chart and not the daily chart. This is because we are looking for mid to long term investing in this stock. Also, the formations on the weekly chart are so powerful for this stock that they render the daily chart formations insignificant.)
Now lets look at the weekly chart for BOOM, which is showing some remarkable breakout signals.

First, this week the stock broke out of an 18 month old resistance at $23.00 a share. Fueling this breakout was huge volume surge during the last two weeks. This signifies a possible sustained rally in the near term future.

Second, The Relative Strength Index (RSI) for the stock is also showing an amazing bullish formation. Notice that the RSI was hugging the zero line for more than 18 months until last week when it made a sharp turn to the upside. This as I said before is a very bullish formation and should never be overlooked by seasoned chartists.

Finally, notice that since the last low at around $14.00 a share, the stock has increased more than 40% in value. This confirms the stock's ability to make huge consistent moves.

After the current rally there is a possibility that the stock might consolidate or make a correction over the next few weeks. But, I would advise not to wait for a pullback because sometimes these stocks establish a consistent upward rally (see TOD which showed similar formations back on 8th November and it never pulled back).

I won't be able to recommend a sell point for BOOM, because if it establishes a good uptrend: the sky is the limit. Just rely on your instincts when deciding on a good sell point. If everything goes alright BOOM can give 20%-40% profit over the next couple of months. For long term investors the profits can be even greater for a hold period of 6 months to 1 year.

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Cardiome Pharma Corp. (CRME)

CRME last closed at $6.12 a share on December 10th. Right now the charts are signaling that the stock is a good buy and will outperform the market over the next few weeks.


The chart above is a weekly chart for CRME. Some important features on this chart are:

1. The stock recently touched support at $4.7 (marked with a black line) and then jumped up. Notice that this support used to be a resistance back in 2009 and for the most part of 2009 the stock wasn't able to defy this resistance (despite several attempts). This clearly shows that the support at $4.7 is strong and it is not likely that the stock will break down below this support in the near future.

2. The other thing to notice is that after hitting this support the stock went up like fire. In just last week alone it increased in value by almost 20%. Fueling this jump was a huge volume surge last week as can be seen on the chart. Volume surge indicates that this new potential uptrend is not going to end soon.

3. The stock has been in a sharp downtrend for more than 4 months now; indicating that an upward move is now long due.

Now let's look at the daily chart for CRME. This chart is signaling a good bullish move starting most probably next week. The key points to notice are:

1. The most recent downtrend started on August 9th and continued with lower lows till roughly 9th November. The next low on 5th December was higher than the previous low: indicating that the sellers are no longer in control of the stock.

2. During the downtrend the stock tried to defy its 50 day moving average twice(indicated by purple circles on chart), but failed both times. But, then last week it successfully defied this moving  average(shown by green circles on chart). Also notice that during this breakout the volume increase was huge, signaling a good bullish move is in store ahead.

3. Notice that the RSI for the stock has remained below the zero line for more than 4 months and just last week it made a sharp and decisive move into the positive territory. This is a very strong bullish indicator, it was introduced by Stan Weinstein in his infamous book "Stan Weinstein's Secrets For Profiting in Bull and Bear Markets".

CRME is a very strong buy right now. I believe that it will establish a good uptrend now and within the next month or two it will rise up to $8.0-$8.5 a share giving a 30%-40% profit.
(But, keep note that CRME is a biomedical company and like all biomedical companies it's stock is very sensitive to negative news about its products and therefore understand this risk before buying CRME.)

NOTE: As a follow up to one of my previous picks "Citigroup" on November 26th: I believe that now it is a strong buy for long term investors who are willing to hold it for a period of 6 months to 1 year.

Theravance, Inc. (THRX)

Theravance, Inc. is a bio-pharmaceutical company. It falls under the sector "Healthcare" and industry "Biotechnology". A look at "$BPHEAL" (Healthcare sector bullish percentage index) clearly shows that most of the stocks in this sector are bullish, this means that stocks in this sector are more likely to establish and/or continue an uptrend in the near future. Apart from this the stock's industry "Biotechnology" is also currently in a very strong position (Look at John Murphy's Industry Groups).

Now that we have established that the stock is in a strong sector and industry lets examine the daily and weekly charts for THRX.

The chart above is a daily charts for THRX. I will briefly point out the bullish signals/features on this chart:
1. The stock is trading above both its 50 day and 200 day moving average.
2. On the most recent day of trading (November 29th) the stock broke out of resistance at $23.00, and has no overhead resistance on this daily chart (which shows 6 months of trading).
3. This recent breakout was accompanied by huge volume on the day of breakout.
4. The stock's daily RSI is decisively above the zero line and has remained there for a long time.
5. A recent MACD crossover can be seen on the chart.

Now lets examine the weekly chart for THRX. This chart is showing some really strong bullish signals. I will point them out here:
1. The stock broke out of resistance at $23.00. Last over head resistance is more than three years old (making it insignificant).
2. The RSI for THRX is above the zero line and seems to be in an uptrend.
3. In August 2010 the stock traded at $12.00 a share and since then it has increased more than 100% in just a few months. This is a very important signal, it means that if the stock is to continue an uptrend it will most likely be as rapid as the last one.
4. Lastly, the stock is trading above both 50 week and 200 week moving averages.

You might have noticed that one important bullish signal is missing on the weekly chart i.e. increased volume during breakout week. But, so far the stock has traded just on Monday of the breakout week and on the daily chart we can see that it indeed traded on huge amounts of daily volume. We just have to wait for the other four remaining days of the week to clearly see the increased volume on the weekly chart as well.

I think that THRX is presenting a very good buy opportunity right now; it is in a strong sector and industry, and the technical indicators are signaling that it will most likely have a good bullish run for the next 3-4 months. A good sell point can be $30.00-$35.00 per share, which represent an old trading range for this stock from back in 2007.

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Citigroup, Inc. (C)

Citigroup, Inc. (C) is showing some interesting technical formations both on the daily and weekly charts. Today on 26th November 2010 it closed at $4.11.

Geeknet, Inc. (GKNT)

GKNT last closed at $20.67 per share as can be seen from the charts. The top chart is a daily chart for GKNT and the bottom one is a weekly chart. Both of these charts have some significant features which I have marked on the charts.

Let us first look at the weekly chart as it will give us an overall  long term picture of the stock. This chart shows three years of trading. The first thing to notice is that the stock recently made a 3 year new high when it traded at $27 per share about two weeks ago, since then GKNT has pulled backed to $20.67 per share.
This incredible price movement was accompanied by heavy trading volume on the rise and drying up volume when pulling back. This usually happens when a stock is about to make a huge bullish move.
Also, on the same weekly chart we can notice that the RSI for the stock is decisively in positive territory, and its price is above both the moving averages: these two facts indicate that the stock's performance is strong and reliable.

Now, we'll look at the daily chart for a short term view on the stock. It is clear from the chart that the stock has made a huge pull back after an incredible upward move. Since the long term picture for the stock looks really good its likely that this pullback is just a regular correction and the stock will establish a good uptrend soon. On the daily chart I have marked the last four days of trading. The thing to notice is the candlestick formations for these last four days of trading: all of them are dojis. In Japanese candlestick charting a doji conveys a sense of indecision or tug-of-war between buyers and sellers, and it usually signals change in current trend. The current trend in the daily chart is a downtrend (as the stock is pulling back), and here these dojis are signifying that the stock is about to establish an uptrend.

To sum up I think that now is a really good time to stack up on this stock. The technical indicators are  flashing that it will soon start moving up. A good target price for short to medium term trading will be the most recent high the stock made i.e. $27 per share, but for long term trading the target price can be even higher.

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Westell Technologies (WSTL)

Westell Technologies is demonstrating some amazing breakout technical signals. The top chart is a weekly chart for WSTL with 6 bullish technical signals marked. The second chart is a regular daily chart.

The 6 signals are as follows: