CREE, NXPI, QIHU, THLD Among Charts to Watch
Once again we’ll take a look at the long side. The market is still resistant, although it may be getting a little long in the tooth here, especially in lieu of the fact that the technicals did not confirm the rally. That’s usually the first sign that we may be getting near an overbought, tired market. Cree, Inc. (CREE) had a monster day on Wednesday on strong earnings, up 7.38 to 40.85, or 22%, on 14.2 million shares. That’s the biggest volume in a very long time, going back as far as 2011. It formed a huge base that it built on, pulled back in January, stabilized, and broke out, not only through lateral resistance, but to the top of the channel, and closed at the very high end of the range. It was a very bullish occurrence. Look for an extension here to 44, the swing trade target. It may very exceed that and get into the upper end of the range at 46. NXP Semiconductors (NXPI), one of our swing trades, formed a beautiful, little micro tenant. The volume was terrific, especially on Wednesday when it had a sudden surge, up 29 cents to 29.50, or .99%, on 2.8 million shares. That’s more than double Tuesday’s volume. It may start to make another move up to the 31 area short-term, and 35 on a swing trade. Long-term, it could be up around 40 in the not-to-distant future. Qihoo 360 Technology (QIHU) is a recent swing trade of ours that broke out, ran up for 4-5 days, backed off to test, bounced, and then broke out on Wednesday, up 86 cents to 32.63, or 2.7%, on 2.1 million shares. If it gets through 33 in the next couple days, it should test 35 short-term, and maybe 39 1/2 intermediate-term. A beautiful-base pattern has developed, technicals are surging, and it looks really good. Threshold Pharmaceuticals Inc. (THLD) popped 83 cents to 5.14, or 19%, on 3.4 million shares. That’s the best volume since October. Look for a test of the key-resistance line at 6.0 short-term, 7.0 intermediate-term, and possibly 9.0 long-term. Other stocks on Harry’s Charts of the Day are ACADIA Pharmaceuticals Inc. (ACAD), Infosys Ltd. (INFY), KB Home (KBH), Keryx Biopharmaceuticals Inc. (KERX), Perceptron, Inc. (PRCP), RF Micro Devices Inc. (RFMD), Silicom Ltd. (SILC), and Stewart Information Services Corporation (STC).
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