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.