Monday saw Jaso Solar (JASO) jump nearly 7% on positive earnings news, which technicians could have seen coming for one of the best known solar stocks.
On March 14, the Profit Scanner powered by Recognia, which allows traders of all experience levels to quickly understand the o technical analysis outlook for a particular financial instrument, identified four short-term bullish patterns in JASO’s chart:
- A short-term “Know Sure Thing” (KST) – the KST, “Know Sure Thing”, an oscillator that combines multiple time frames into a single measure of momentum for a security.
- A Moving Average Convergence Divergence (MACD). A bullish event is generated when the MACD crosses above the signal line, showing that the current MACD is actually higher than its average, a sign of increasing strength for the price.
- A bullish signal from the Commodity Channel Index that indicated an end to the prior bearish trend.
- Bullish momentum, which is significant because it signals the strength of price trends
With JASO closing at $11.42 on Friday, March 14, the Profit Scanner identified a short-term target of $13.60 to $14.60. On Monday, after the company released its latest quarterly report, JASO jumped to a daily high of $13.14, just shy of the target.
JASO has now settled back near the high $11 range, and while it certainly could make another run to the target, the Profit Scanner has no shortage of trading ideas on other stocks that could also deliver surprise spikes in the short term. Here are three stocks trading under $10 that are setting up to return 25% to 70% or more within the next few weeks – names that you might have never found or considered on your own.