Pattern Watch

Before we get into this week's list of breakout candidates, here's the channel on the S&P futures which shows a little more room for continued upside. I still believe a low risk short opportunity may present itself with a touch of the upper channel line...

Zooming in on the 30 day, 30 minute charts we can see that all indices have pushed to new highs. The S&P continues to be the recent relative strength leader...

The Nasdaq, having been the laggard, was very strong on Friday. Note how prices found support at the shortest of moving averages as the tech index notched a solid trend day...

Friday saw a big pop in the DOW off the 5 day moving average late in the session...

Moving on, last week was great for breakouts and most confirmed on solid volume. If we see a few days of market weakness, it may not be a bad idea to watch for retests on candidates such as ARST, CERN, CYD, etc.

This week's list begins with thinly traded, ADVS...

ATW - Imminent Breakout

BLKB - Imminent Breakout (Thin)

DRQ - Cup and Handle

LZ - Imminent Breakout

NE - Ascending Triangle

SWI - Cup and Handle

SHOO - Cup and Handle

HOGS - Imminent Breakout

Click Any Chart To Enlarge

Top Pick: On strength... HOGS