After two years of consolidation in a large triangle pattern Sprint (NYSE: S) has made a technical breakout. Trading over 150 million shares and gapping up, Sprint pierced through $4.80 trendline resistance and hasn’t looked back yet.
Michigan based energy company DTE Energy (NYSE: DTE) has seen its stock price base between $44-$47 per share this past year. Recent trading activity should generate more excitement as the stock broke above $47.55 with higher volume. If we see follow through into next week DTE could make a 3 point run and a move toward blue skies.
Gap (NYSE: GAP) is a clothing retailer that has been volitile lately. The company experienced a steep sell off in early January, dropping from $22.41 to $18.94 before bottoming. Market trading action caused a small sized gap in the chart near $21.50. We decided to get short with a small sized put option after the gap was filled.
China Agritech (CAGC) is a manufacturer of liquid fertilizers in the People’s Republic of China. The company has come under scrutiny in recent trading for securities fraud allegations regarding the size and scope of its business. Short sellers have taken hold of the company, sending shares down from their peak of $30.75 to just $7.44 per share in recent trading.
Peet’s Coffee & Tea (NASDAQ: PEET) and Green Mountain Coffee (NASDAQ:GMCR) are two coffee stocks showing up on our radar. With the price of coffee beans moving higher you have to wonder how much longer these two stocks can run. Margin erosion could occur in the near future as increased coffee costs are difficult to pass on to the consumer. Premium names could be punished as consumers trade down to cheaper brands.
E*Trade Financial (NASDAQ: ETFC) and Goldman Sachs (NYSE: GS) are two investment brokerage stocks showing up on our radar today. E*Trade has formed a 5-month ascending triangle formation with a $15.60 neckline. It could make a major move as it nears the apex of its triangle pattern. Goldman Sachs is rallying off its June “bear trap” and looks to test the $178.00 resistance trendline.
China Automotive Systems (NASDAQ: CAAS) and Motorola (NYSE: MOT) appeared on today’s chart scans. On the eve of the highly anticipated General Motors IPO, China Automotive Systems has neared the apex of its symmetrical triangle formation. The stock has also been testing a 2-year support trendline in recent trading. Motorola shows the makings of an inverse head and shoulders pattern. With a neckline of $8.75, MOT is near breakout levels.
China Sunergy (NASDAQ: CSUN) and Cenovus Energy (NYSE: CVE) are two stocks showing up on the radar screen today. China Sunergy is a heavily shorted solar energy stock with earnings on November 15th. With recent positive earnings announcement from peers in the industry and an ascending triangle formation, CSUN could be set to jump. Cenovus Energy is no stranger to our chart scans. This oil sands company looks primed for a new 52-week high.
Options Xpress (NASDAQ: OXPS) & MBIA (NYSE: MBI) are two stocks popping up on our radar today. Options Express is a discount brokerage firm trying to breakout of an 18-month base. It current trades near the $17.50 resistance trendline. MBIA is facing some headwinds as a peer Ambac (ABK) announced it would seek bankruptcy protection. Keep a close watch on MBIA as earnings will be announced after hours today.
Cenovus Energy (NYSE: CVE) & Energy XXI (NASDAQ: EXXI) appeared on today’s stock chart scans. Since its spin-off in late 2009, Cenovus has traded in a range of $25 to $30 per share. The company develops oil sands properties in Canada and refining operations in the United States. Energy XXI develops oil and natural gas properties in south western United States. Short covering has propelled the company’s share price higher in recent trading.