This Is Spartan

 | Apr 03, 2014 | 11:00 AM EDT  | Comments
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Stock quotes in this article:

nbg

,

sptn

Spartans! Ready your breakfast and eat hearty. For tonight we dine in hell!

Greece is the word. The theme, in one regard or another, seems to be working. So does the idea of buying a stock that has been beaten to hell.

Back in 2008, National Bank of Greece (NBG) traded up over $600, and now it sits under $6. Given the events in Greece, it's an understandable move, and the look here at NBG isn't because the stock has lost 99% of its value in a little over half a decade. The look is based on the chart and the concept that the world's economies are getting better or at least not getting any worse. 

The daily chart on NBG shows a "W" formation. Granted it looks like a W which survived while 300 of its fellow Spartans fell, but the pattern is still there. In general, this is a bullish pattern or the start of a cup-and-handle here, which would also be a bullish pattern coming off of $4.50 from late February.

 

NBG
StockCharts.com

 

The challenge here is that the secondary indicators don't offer too much. They seem to support a bullish tilt, but there is no big breakout in volume, commodity channel index, relative strength index or money-flow index. Then again, there isn't much in the way of a bearish divergence beyond the lower high in the CCI. Right now, I don't have a trigger to enter the stock, but I am watching closely. I do believe it will make a push toward $6, which is a huge level. Over $6, I believe NBG will be setting up for a huge move toward double digits in the next 12 to 18 months. I also believe it will offer a swing-trading opportunity as well, with a target of $6.60. I am willing to enter on a close over $5.80 and then add on a push over $6.

Food-related names outside of the restaurant category have been showing up in a lot of my recent momentum scans. And before you think it, I'll stop you: This isn't a recommendation of Greek yogurt. Instead, take a look at Spartan Stores (SPTN). This one caught my attention, as it came onto the screens right after SuperValu (SVU). The company produced strong results in early March, but the stock failed to react in a positive manner. While it currently trades below book value, that may change soon.

 

SPTN
StockCharts.com

 

Spartan is breaking though a consolidation channel and seems likely to test $25 soon. The latest move is coming on good volume, and this is the strongest the MFI has been since the last push over $25. RSI is confirming the price breakout along with the CCI. Note that the breakout in the RSI slightly preceded the last three days' push in price. A little consolidation here without breaking $23 might allow the CCI to rest a bit before making another push higher. I'm watching this one for the moment as well, but a push over $24 or a successful bounce off $23.20 would have me long in shares.

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