The chart of Nektar Therapeutics (NKTR) is breaking out and should be bought now.
This chart of NKTR, above, shows a "triple bottom" at $10, with prices breaking out on the upside at $14. There is a rising On-Balance-Volume (OBV) line, which is bullish, along with the bullish Moving Average Convergence Divergence oscillator. Prices are breaking out now and the height of the pattern when added to the top of the pattern yields a price target between $18 and $18.50.
This longer-term chart of NKTR, above, shows what could happen if $14 is cleared -- a rally to $19 could ensue.
Nov. 17, 2015 | 3:15 PM
Chart Gives Us a $74 Price Target on Fleetmatics Group
- A sell-stop at $55 should be fine for now.
The charts of Fleetmatics Group (FLTX) look great and we have a price target of $74.
Everything is heading in the right direction in this chart, above, of FLTX. The chart looks great. Prices are rising, the On-Balance-Volume (OBV) line is rising, the moving averages are rising and the Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this chart of FLTX, above, we have rising prices, a rising OBV line, a rising 40-week moving average and a bullish MACD oscillator. Also, there are no bearish divergences between prices and indicators like the momentum study.
This point and figure chart, above, gives us a price target of $74 for FLTX. A sell-stop at $55 should be fine for now.
Nov. 17, 2015 | 2:45 PM
New 52-Week High for Global Payments May Be Fools Gold
- Consider raising your sell-stop protection.
The chart of Global Payments (GPN) is still pointed up and prices just made a new 52-week high, but the rate of the advance is slowing and traders need to pay closer attention.
When you look at this chart of GPN, above, you say "this looks great," but the rate of increase in prices is slowing and that can foreshadow a correction. Prices are rising while the On-Balance-Volume line and moving averages are heading in the right direction.
The bottom panel shows the momentum or rate of change of prices. The rally in November has been at a slower pace than the October advance. This bearish divergence (higher highs in price but with lower highs from the indicator) is an early warning sign that there could be a price reversal ahead. The divergence can continue to be a "yellow light" and prices might not decline, but I believe it is always better to beware of a potential change rather than being surprised by one.
What to do from here? First, continue to watch GPN for any other signs of weakness. Second, consider raising your sell-stop protection.
Nov. 17, 2015 | 2:15 PM
A.O. Smith Is Heating Up
- Stay long with AOS above the rising 40-week average.
Shares of A.O. Smith (AOS) look like a good addition to one's portfolio.
Shares of AOS had a shallow summer shakeout (chart above) and broke out to the upside in late October. Prices have been stabilizing in the mid-$70s before what should be another move higher. The On-Balance-Volume (OBV) line is rising, as are the 50-day and 200-day moving averages.
Above, we have a strong-looking chart of AOS. The OBV line is turning up with prices while the Moving Average Convergence Divergence (MACD) oscillator supports the rally. Stay long with AOS above the rising 40-week average.
Nov. 17, 2015 | 12:45 PM
Utilities ETF Could Help Lift Senior Averages
- A rally above the $45 to $46 area could get the XLU to really pop.
Utilities led off the lows in August, but this important sector has become stalled. An improved technical picture could mean that the Utilities Select Sector SPDR ETF (XLU) helps lift the senior averages into December.
The chart of XLU above shows a flat to rising 50-day simple moving average. The XLU could soon cross above the 200-day average, giving us a buy signal. The On-Balance-Volume line turned up in July and August but has been flat recently. Strength in the XLU over $44 would mean it has better footing. A rally above the $45 to $46 area could get the XLU to really pop.
