Analyst commentary. Includes: CENT, CRUS, EMKR, BIG, FL, MPWR, GKOS, OXM, DSW, and LB.
| Comments |
|---|
| BIG Big Lots, Inc. ($46.63) - Retailing - broke a double bottom at $46. The stock is a three for 5'er however this is the second consecutive sell signal and the trend is negative. No new positions here and if long would consider moving to the sidelines. Next support on the chart is at $43 and resistance is at $51. |
| CENT Central Garden & Pet Company ($32.30) - Household Goods - After forming, but not breaking, a double top at $39, CENT broke a double bottom at $33, setting the chart up for a potential shakeout pattern. From here, the action point of the shakeout would be triggered with a reversal up into X’s and the pattern would then complete with a triple top break at $40. CENT is a perfect 5 for 5’er within the favored Household Good sector. Okay to play the pattern on the reversal up into X’s or upon completion. A move to $31 would negate the shakeout pattern. |
| CRUS Cirrus Logic Inc ($67.05) - Semiconductors - With the most recent action, CRUS broke a triple top at $67, marking a new all-time high on the chart. 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. Additionally, this stock has bullish price objective of $95, suggesting the potential for further upside from here while offering a reward to risk ratio north of 6. Okay to buy or hold here as demand is in control. The first sign of trouble from here comes with a move to $62, a double bottom sell signal. |
| DSW DSW Inc. ($18.66) - Retailing - DSW broke a spread triple bottom at $18.50, a low watermark not seen on the chart since March 2011. This stock is an unacceptable 0 for 5’er within the unfavored Retailing sector that has been trading below the bearish resistance line since May 2014. Monthly momentum has been negative for two months, suggesting the potential for further downside from here. Additionally, the bearish price objective is $4. Avoid as supply is in control and there is no remaining support on the chart. Note earnings are slated for 5/23/17. |
| EMKR EMCORE Corporation ($10.85) - Semiconductors - EMKR broke a double top at $11 on Tuesday, marking a new 52 week high. This stock has been trading in a positive trend since September 2014 and is a strong 5 for 5’er within the favored Semiconductors sector. Weekly momentum has been positive for four weeks, suggesting the potential for further upside from here. Additionally, the bullish price objective is $18.75, adding to the positive technical picture. Okay to hold here or buy on a pullback as the stock is nearing the top of the 10 week trading band. The first sign of trouble from here comes with a move to $8, a double bottom sell signal. |
| FL Foot Locker, Inc. ($71.70) - Retailing - broke a triple bottom at $71. The stock is now on a sell signal and lies just above its bullish support line which is at $70. Although a 4 for 5'er, FL needs to hold this support and move back to a buy signal before positions can be considered. If long, watch for the move to $69 which will be a violation of the bullish support line. Under that level the next support on the chart is at $66. |
| GKOS Glaukos Corp. ($40.29) - Healthcare - broke a double bottom at $39. GKOS is a 3 for 5'er. However, this is the second consecutive sell signal and the move follows a triple bottom break which completes a bearish catapult formation, The next support on the chart is at $38, a previous level of support but under that it is at $31, the bullish support line. No new positions here and those long can consider moving to the sidelines. |
| LB L Brands Inc. ($48.42) - Retailing - LB broke a double bottom at $49 a day before expected earnings. This stock is a weak 0 for 5’er as it does not have any positive trend or relative strength characteristics in its favor at this time. Additionally, LB ranks 71st out of 89 stocks within the Retailing sector RS matrix, making this one of the weakest names within this unfavored space. Avoid as supply is in control. The final level of near-term support on the chart is at $44. Resistance is at $53. Note earnings are slated for tomorrow, 5/17. |
| MPWR Monolithic Power Systems Inc. ($98.17) - Semiconductors - MPWR broke a double top at $97 and continued higher to $98. This stock is a strong 4 for 5’er that has been trading in a positive trend since October 2015. Monthly momentum just flipped positive, suggesting the potential for further upside from here. Additionally, this stock has a price target of $110, adding to the positive technical picture. Okay to initiate new positions on the breakout as the weight of the evidence is positive and demand is in control. The first sign of trouble comes with a move to $89, a double bottom sell signal. |
| OXM Oxford Industries Inc ($54.84) - Textiles/Apparel - OXM broke a double bottom at $55 on Tuesday. This stock is an unacceptable 1 for 5’er that is trading below the bearish resistance line. Monthly momentum has been negative for four months, suggesting the potential for further downside from here. Avoid as supply is in control and the weight of the evidence is negative. The next level of near-term support is at $53. Further support is afforded at $50. |
