Since the market moved up there are new comers to the list of stocks which are near the highest price of the recent 52 weeks and might break up soon.
Among them are: $INTC, $VFC, $CNI, $ARW, $ITW, $PBR.
Let me review each chart and tell you how I see it.
$PBR is nearing $18 and in an interesting way. It was near that area before, at the end of 2013 and had a successful double top divergence. It seems like history is repeating itself and while the stock struggles to reach $18, the MACD-H has a lower peak at the same time. If the stock breaks above $18 it will be interesting to see how that level switches to being a support for the prices in the future but most likely it will bounce again and fall to lower prices.
$ITW had a too-good-to-be-true smooth run from $82 to almost $90 in the past month and will not likely continue in the short term. When I say short term, I mean a few days to a few weeks. It will probably go down a few dollars before resuming its impressive up momentum.
$ARW is the best candidate, in my opinion to break up soon to new price levels. It defined the $62 level in the beginning of July, tested and confirmed it in mid July and ready to break out above that level. Once it does, it may continue up, depending on volume of trades.
$CNI had a long upward run this year and it seems like it is near exhaustion. There is a pronounced MACD-H divergence with a double top formation which is a warning sign that things are about to change direction soon. Although this is not a fool proof sign, it is a strong one and easy to trade by. Volume seems to weaken and this can also mean that the current price level is not sustainable in the foreseeable future.
$VFC is trying to break above the $64 level for more than half a year now and it seems like the price range gets narrower as time goes by. The bottom of the price swings goes up and soon, in a month or two, the price will have no where to go but up. A cheap option combination with nice potential for profit could be buying the at-the-money $65.00 Jan 2015 call option and at the same time selling the out-of-the-money $70.00 Jan 2015 call option for a total cost of $145 for every contract with 100 shares. The worst case is the loss of the entire $145 and the best case is a profit of $355 before commissions. Of course, if the stock moves south or stays below $65 too long, I would suggest selling early and recouping some of the investment for another time or a different stock.
$INTC is a heavy weight stock and its price chart is too jumpy for my taste for such a large volume. I see a double top MACD-H divergence which means the price may go down from here on. Not my cup of tea. Sorry, moving on.
The list of stocks near the bottom is getting short and only has these tickers: $BKE, $DO, $SBCF, $ECYT. I will not post images as they haven’t changed much from the previous days.