4 Computer Stocks With Bullish Chart Action

Advertisement

Tech stocks are hot this week. The sector continues to chug higher ahead of Memorial Day, with the Nasdaq Composite up about 1% this week — considerably more than the S&P 500 or Dow Jones Industrial Average.

Cyber MondayThe Profit Scanner has zeroed in on the computer hardware/software industry, identifying four such stocks that are sporting bullish patterns and appear poised to move higher in the coming days.

Read on for the details.

 

4 Computer Stocks With Bullish Charts: Adobe Systems Incorporated (ADBE)

05202015-adbe
Click to Enlarge
 Adobe Systems Incorporated (NASDAQ:ADBE) has had a great couple of weeks, and the chart’s shown plenty of bullish signals in that time. One of the latest was on May 15, when ADBE made a Double Moving Average Crossover.

With so much day-to-day volatility in the market, it can be hard to tell when a stock is in a true up- or downtrend — and that’s where moving averages come in handy. When a faster moving average (in this case, the 21-day) crosses above a slower moving average (the 50-day), it suggests that the stock is in an established uptrend.

When interpreting moving averages, pay close attention to the time frame used. Since these two are plotted over a shorter-term period, this is a near-term bullish signal.

Also on May 15, Adobe gave another short-term bullish signal via its Momentum indicator. In the above chart, you can see the indicator pushing significantly above its flatline, which means the stock price has picked up steam compared to the price 10 bars prior.

Basically, this tells us that ADBE’s uptrend is a strong one … further support of the Profit Scanner’s bullish thesis.

4 Computer Stocks With Bullish Charts: Vasco Data Security International, Inc. (VDSI)

05202015-vdsi
Click to Enlarge
 Vasco Data Security International, Inc. (NASDAQ:VDSI), the cybersecurity company, has also logged a variety of bullish events lately. Three of its indicators turned green on May 15: the Momentum, Williams %R and MACD. And on Monday, the Profit Scanner identified a bullish Symmetrical Continuation Triangle on VDSI’s chart — one that carries 37%-48% further upside from current levels.

This pattern is marked by lower highs and higher lows, from which you can trace two converging trendlines. Volume tends to diminish during this time, then spikes as the stock breaks above the upper trendline. That’s just what happened on Monday, and from here the Profit Scanner is expecting Vasco to reach $37–$40 in the next 64 trading days.

On Tuesday, VDSI enjoyed a bullish Triple Moving Average Crossover from the 4-, 9- and 18-day moving averages. That’s a much shorter-term signal, so the stock is looking good for quick profits as well as for a longer hold.

4 Computer Stocks With Bullish Charts: iDreamSky Technology Ltd (ADR) (DSKY)

05202015-dsky
Click to Enlarge
 Chinese mobile game maker iDreamSky Technology Ltd (ADR) (NASDAQ:DSKY) is perhaps lesser known than Adobe or Vasco, but also has a very strong chart at the moment. On Monday, DSKY completed a bullish Continuation Wedge, and the Profit Scanner is looking for the stock to move from $9 to the $11.30-$11.90 area.

The bullish Continuation Wedge takes the form of two converging trendlines slanting downward against the trend. You can see the bears attempting to take over, but ultimately the stock breaks above the upper trendline, which paves the way for its prior uptrend to continue.

You can expect DSKY to make the expected move past $11 in the next 19 trading days. The stock has also overtaken its 21- and 50-day moving averages, another strong bullish signal.

4 Computer Stocks With Bullish Charts: Unisys Corporation (UIS)

05202015-uis
Click to Enlarge
 Last but not least is Unisys Corporation (NYSE:UIS). The IT and consulting giant has had a rough go of it for much of 2015, but on Monday there were two bullish signals on the UIS chart … one of which was a bullish Engulfing Line.

Above, you can see the two candlesticks that make up a bullish Engulfing Line: the first, black candlestick being “engulfed” by the second, white candlestick. This tells us that, after a protracted period of selling pressure, the bulls have finally taken over from the bears.

Unisys’ other event was a bullish Outside Bar, in which the latest trading range completely encompasses that of the prior bar. Like the Engulfing Line, it suggests that selling pressure is at an end and the stock is due for a reversal higher.

Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2015/05/4-computer-stocks-with-bullish-chart-action-uis-dsky-vdsi-adbe/.

©2024 InvestorPlace Media, LLC