Analyst commentary. Includes: ACAT, ADSK, ALK, BDX, EXEL, GNMK, KOF, LEA, HIIQ, and SHAK.
| Comments |
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| ACAT Arctic Cat, Inc. ($14.09) - Leisure - ACAT broke a triple bottom at $14.50 and continued lower to $14 on Tuesday. This move violated the bullish support line, therefore downticking this name to an unacceptable 0 for 5’er. Weekly momentum has been negative for three weeks, suggesting the potential for further downside from here. Additionally, this stock ranks 45th out of 53 names within the Leisure sector RS matrix, making it one of the weaker names within this space. Avoid as supply is in control and the weight of the evidence is negative. Note earnings are slated for 1/26/17. |
| ADSK Autodesk, Inc. ($79.78) - Software - ADSK has returned to a buy signal after breaking a double top at $80. The stock is a 5 for 5'er within the top 10 of the favored Software sector matrix, which consists of 94 stocks. The weight of technical evidence is positive allowing those looking to add new positions or add to current ones to initiate on this breakout. The first sign of trouble comes with a move to $73, a double bottom break. |
| ALK Alaska Air Group Inc ($91.78) - Aerospace Airline - As a follow up, ALK completed its shakeout formation today after breaking a triple top at $92. Those that were waiting for this potential break to occur may initiate positions here. Support is at $87 and earnings are expected on 1/19. |
| BDX Becton, Dickinson and Company ($171.98) - Healthcare - After developing support at the $162 level, BDX has returned to a buy signal after breaking a double top at $172. The stock is a 4 for 5'er whose weekly momentum recently flipped positive after spending 13 weeks in negative territory. New positions may be initiated upon this breakout. Initial support is at $162, while longer term support comes against the bullish support line at $152. Earnings are expected on 2/1. |
| EXEL Exelixis, Inc. ($18.62) - Biomedics/Genetics - After finding support at $14.50, shares of EXEL rallied, breaking a double top buy signal at $18.50, a new 52 week high. This stock is a perfect 5 for 5’er as it is trading in a positive trend and is showing significant strength relative to both the market and its peers. The weight of the evidence remains positive and demand is in control. Okay to buy or hold here. The first sign of trouble comes with a move to $14, a double bottom sell signal. |
| GNMK Genmark Diagnostics Inc ($12.89) - Healthcare - GNMK completed a bullish triangle pattern after breaking a double top at $13. The stock possesses all five positive technical attributes and has just flipped to positive weekly momentum. New entries are welcomed on this breakout. The first sign of trouble comes with a move to $10.50, a double bottom break. |
| HIIQ Health Insurance Innovations Inc. ($19.14) - Insurance - HIIQ broke a double top at $19, which completes a bullish triangle pattern. This marks the third consecutive double top in a strong uptrend. The stock is a 5 for 5'er with a bullish price objective of $23.5, which indicates the potential for further upside potential from here. Those interested in new positions may do so here and average down on a pullback. Initial support is in the $16's, while longer term support is available at $13. |
| KOF Coca Cola Femsa, Sa (Mexico) ADR ($60.18) - Food Beverages/Soap - KOF broke a double bottom at $60, completing a bearish catapult pattern. This stock is an unacceptable 0 for 5’er as it is trading in a negative trend and is showing weakness relative to both the market and its peers. There is no remaining support on the chart. Avoid. Resistance is at $64. |
| LEA Lear Corporation ($143.09) - Autos and Parts - LEA broke a double top at $140 and continued higher to $142 on Tuesday. This is a new all-time high on the chart as well as the fifth consecutive buy signal on the chart since July 2016. LEA is within the favored Autos and Parts sector and is a perfect 5 for 5’er as all of the trending and relative strength characteristics are positive here. Okay to hold here or buy on a pullback as the stock is nearing the top of the 10 week trading band. Support is at $132, the December low, and $118, the bullish support line. Note earnings are slated for 1/26/17. |
| SHAK Shake Shack Inc ($34.91) - Restaurants - After meeting resistance at the bearish resistance line, shares of SHAK slid, breaking double bottom at $35. SHAK has been trading below the bearish resistance line since August 2016 and has been showing long term weakness relative to both the market and its peers since October 2015. Additionally, this stock ranks within the bottom quartile of the Restaurants sector RS matrix, making it one of the weaker names. Weekly momentum has been negative for four weeks, suggesting the potential for further downside. Avoid. The next level of support is at $31 while resistance is at $38. |
