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: