Analyst commentary. Includes: ADSK, APC, DFT, GMLP, LFUS, NEM, TRV, VIAB, REN, and MTCH.
| Comments |
|---|
| ADSK Autodesk, Inc. ($78.46) - Software - This technology name has moved to new all time highs and the rally over the last couple of months has been impressive, pushing ADSK up from the 68 area to 83. We are now seeing the stock pullback and this provides an opportunity to enter new positions here as well as on further dips to the 73 area, closer to the middle of the ten week trading band. In addition, note that the ranking in the sector matrix is 8 out of 95 stocks in the software sector so it has good relative strength. Good support is in the 68-69 area and the next price objective is 99. |
| APC Anadarko Petroleum Corporation ($70.79) - Oil - APC rallied to a new 52-week high at $73, breaking a double top along the way at $72. This breakout is also notable as it completes a bullish catapult formation following the quadruple top break last month at $66. The stock ranks in the top quartile of the favored Oil sector matrix and possesses 4 positive technical attributes. New entries are best served on a pullback from here as the stock is trading near the top of its 10-week trading band. The first sign of trouble comes with a move to $66, a double bottom break. |
| DFT Dupont Fabros Technology, Inc. ($42.77) - Real Estate - DFT broke a triple top at $43. This returns the stock to a buy signal after being stuck in a consolidation phase that began in September this year. In addition, DFT has a technical attribute score of 4. Those looking to buy into DFT may do so at current levels. Initial support is in the $38 and $39 range. Longer-term support is found against the bullish support line at $35. Those already invested should be aware of resistance at the $48 level, the stocks previous high. |
| GMLP Golar LNG Partners LP ($22.52) - Transports/Non Air - With the most recent action, GMLP broke a double top at $23, the sixth consecutive buy signal on the chart since January. This stock is a strong 4 for 5’er that has a yield of 10.26%. Weekly momentum has been positive for two weeks, suggesting the potential for further upside from here. Okay to buy or hold as demand is in control and the weight of the evidence is positive. The first sign of trouble from here comes with a move to $18, a double bottom sell signal. |
| LFUS Littelfuse Inc ($155.53) - Electronics - LFUS broke a triple top at $156, marking a new all-time high and its second consecutive triple top break. The stock is a 5 for 5’er ranking in the top quartile of the favored Electronics sector matrix. Partial positions can be considered on the breakout here, while we would look for a pullback to $150 to add further. Initial support comes at $146, while longer term support is at $132. |
| MTCH Match Group Inc ($17.85) - Internet - After a little over a year of trading, MTCH has developed a nice chart pattern. In May the stock moved into a positive trend and since then we've seen a textbook series of higher highs and higher lows above the bullish support line. The most recent consolidation on the chart since October has resulted in a potential bullish triangle pattern at 19. Okay to buy MTCH on the breakout at 19 with a stop/hedge point then afforded at 16.5, a double bottom and violation of the bullish support line. Note also that the weekly momentum has flipped to positive and the price objective is a lofty 30. |
| NEM Newmont Mining Corporation ($32.85) - Precious Metals - Coming into this week we have seen a large number of Precious Metals stocks turn to positive weekly momentum. In fact, the Percent of Precious Metals Stocks with Positive Weekly Momentum MOPREC jumped from 34% to 66%. One of those stocks which is turning back to positive weekly momentum is NEM. The stock has held the bullish support line after correcting from 46 to 31. In fact, support has been held at 31 twice now and a double top has been set up at 35. Okay to buy NEM on the breakout at 35 with a stop/hedge afforded at 30, a triple bottom and violation of the bullish support line. |
| REN Resolute Energy Corp. ($34.01) - Oil - The energy group continues to gain relative strength and we see new breakouts each day from the sector. One of the breakouts from Monday comes from REN. This stock is a fast mover but the chart is very orderly. In November REN completed a bullish triangle pattern at 31 and after rallying to 35, we've seen some quick consolidation on the chart. This consolidation has led to a triple top buy signal at 36. Okay to buy REN here with a stop/hedge point at 31, a double bottom. The next price objective is 43.50 and also note that the weekly momentum has flipped back to positive. |
| TRV The Travelers Companies, Inc. ($120.91) - Insurance - TRV broke a triple top at $120, completing a shakeout pattern. This stock is an acceptable 3 for 5’er in the favored Insurance sector that has been trading in positive trend since October 2011. Demand is in control and the weight of the evidence is positive. Okay to hold here or buy on a pullback. Note this stock has a yield of 2.22% attached to it. |
| VIAB Viacom Inc. ($34.99) - Media - VIAB broke a triple bottom at $35, the third consecutive sell signal on the chart. VIAB is a 0 for 5’er as it does not have any positive trending or relative strength characteristics in its favor. Supply is in control. Avoid as the weight of the evidence is negative. There is additional support here at $35 and finally at $31. Note resistance at $39. |
