Ford Motors (F) is testing 2-year support after making a recent high around $19.00 during earnings season. Since its high the stock has been hammered on concerns of slowing growth in Chinese markets and stagnant US markets. Today’s candle and low at $13.85 represents a key support level as shown on the chart above.

While we remain skeptical of the entire alternative energy sector in the near term, the chart pattern formed by Trina Solar (NYSE: TSL) proved irresistable. The China based manufacturer of photovoltaic (PV) modules worldwide has a chart pattern that indicates heavy accumulation taking place. A “mini” cup & handle formation within a larger ascending triangle formation seems like a good place for a speculative investment. Higher energy prices and increased economical incentives make solar power attractive as a cost cutting measure. With that being said, Trina Solar will experience some volatility in the short term as it announces earnings February 22nd, 2011 with13% of the float held short. Any positive guidance could propel TSL to a share price ($36.00) not seen since its IPO in 2007. If earnings look positive on Tuesday we would certainly consider doubling our position at slightly higher levels on a technical breakout.

Dean Foods (NYSE: DF) has been hit hard over the past few years. The dairy product manufacturer has seen its stock price decline from the mid $20′s to just $10.40 as of today’s close. While the dairy industry has been hard hit with high input costs and slim margins, comments made during this quarter’s earnings release indicate stabalization. David Tepper’s hedge fund Appaloosa Management LP reported a stake of 13,396,536 (7.35%) shares filing their 13G with the SEC on January 10th. Speculation is looming once again as Dean has been talked about as a potential takeover target. If Dean Foods stock can manage a move over $10.80 we think it can run to the chart gap at $13.00-$14.00 per share.

Although we might have re-entered a little early in Spartan we believe the reaction to today’s earnings release was overdone. The company reported a strong quarter, beating consensous estimates by .02 on higher revenue. Despite a quality earnings release (SPAR) was down more than 8% and closed near session lows. With Spartan showing such a beautiful multi-year breakout we simply couldn’t resist re-entering on the pull back. Watch (NASDAQ: SPAR) as it attempts to backtest support near $6.75. On a fundamental basis , we believe SPAR is worth somewhere in the neighborhood of $8.00-$9.00 per share as the auto industry recovers in 2011.

Spartan Motors (NASDAQ: SPAR) designs and manufactures various parts of motor vehicles – but its chart looks more attractive than its business model. Looking at the chart above you can make out the rough outline of an inverted head & shoulders pattern. Today, this stock came up on my radar as it pierced through its $6.95 resistance level. While this may seem great, it presents a dilemna for anyone investing in SPAR this week – take an immediate small gain or hold through often volatile earnings set to be announced next Tuesday (02/15/2011). This decision will likely depend on how SPAR trades on Monday before earnings.

Looking at the chart below, we see a nearly 3-year long consolidation phase. With CMP topping in the low $80′s several times, a multi-year neckline has formed. The Compass Minerals chart shows the makings of an impressive cup & handle formation. The stock should run towards neckline resistance as its  October 26th earnings date nears.

Compass Minerals International Cup & Handle

(NYSE: CMP) FREE Stock Chart Analysis!

While cup & handle patterns are extremely reliable it is important to note that October 26th earnings will determine the fate of Compass’ share price. The announcement of capacity expansion for its sulfate of potash facility and price increases seem to indicate strong demand and pricing power. A recent bid for competitor Potash Corp (NYSE: POT, Free Analysis) by BHP Billiton (NYSE: BHP, Free Analysis!) should also give support to share price. If Compass breaks the $82.00 level with any type of conviction, a major follow through move could result as remaining shorts cover. The stock should rally with ease hitting all time highs and a blue skies breakout. Any weakness in share price should be cushioned by the 2% dividend yield.

Disclosure: Long Compass Minerals (CMP) call options at the time of publication.

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