Some Charts to Ponder

Unfortunately I have not had any time to run screens to find my readers a new stock to make them rich. Fortunately, the stocks I've been long in the past few days are making me money.

Due to a lack of time to run new screens, I want to take a look at 2 charts of companies in which I'm long.

The first is STKL. I have made good money trading STKL in the past, buying low, and selling near resistance in the $11.00s. STKL has now decided to push past resistance and go for new highs. After making new highs, it has pulled back to revisit its pivot point at ~$11.75 This setup, the breakout and then pullback to revisit the pivot point is possibly my favorite setup. The chart shows a textbook pullback, with volume decreasing as an orderly bull flag is formed. I will look to double my position in STKL should it break the blue trendline above the flag. For an interesting look at some fundamental factors which may drive the price, take a look at posts over at The Daily Speculator.


The second is SMSI. Maybe one or two of you out there bought SMSI when I featured it as a 20-Day Play. If you did, I hope you are enjoying your profits. The chart looks like SMSI is trying to break free from the recent consolidation and continue upward. While the stock has made a huge move recently, it is still showing tremendous strength. While it is still not far from being overbought, I believe that this stock's strength cannot be underestimated.