Friday, February 8, 2013

Four charts to watch

There are still a lot of strong stocks, and some stocks breaking out, so let's take a look at some of them.

Acura Pharmaceuticals Inc. ACUR , which had some big days in November and December, formed a falling wedge over the last seven weeks. The stock popped out of the wedge on Wednesday, running from 1.89 to 2.54, and closing at 2.35, up 48 cents, or 25%, on nearly a million shares traded. That's the biggest volume in about five weeks. Look for a test of the highs at the next level around 2.75-2.77, and then the secondary target at 3.20-3.22.

Dendreon Corp. DNDN �had a pretty good day on Wednesday. In December, the stock broke above its declining tops line and has been climbing higher in a series of wedges and breakouts. It pulled back sharply in early January but held near support, and then rebounded just as sharply. It pulled back one more time in an orderly retracement in the last couple weeks, only to break out again on Wednesday, up 49 cents to 6.65, or 8%, on 13 million shares. It may very well test the 6.90 zone, and then 7.00-7.05. There is some resistance at 7.20, and an outside chance it may reach that short-term. Target beyond that is 7.75.

First Solar Inc. FSLR �also had a good day on Wednesday. It held for three days near support, and then on Wednesday broke above the declining tops line, up 2.11 to 31.13, or 7%, on a solid 6.8 million shares. The rising channel on an intermediate-term basis indicates it's headed toward 40.

Zynga Inc. ZNGA �popped 25 cents to 2.99, or 9%, on a whopping 94 million shares on Wednesday. This may be the biggest volume on an up day since its IPO. This stock has dropped from 15 down to 2, based out for a couple months, popped and pulled back, and on Wednesday, it popped and broke out. Look for a test in the next day or two of 3.25-3.40 short-term, which is resistance. If it can get up through there with this kind of volume, it wouldn't be surprising to see this stock get up to 4.25-4.50.

See Harry's video chart analysis on these stocks.

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