3 Bullish Broadcasters

Megaphones, breakouts, continuation patterns, oh my!

   

In the TV and broadcast space, the Trending123 Pattern Scan powered by Recognia has revealed three bullish intermediate-term opportunities in highly-traded, liquid stocks. The Recognia system identifies technical patterns and target prices, which are included below should you be interested in these names for stock or options trading.

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Symmetrical Continuation Triangle

Comcast (CMCSA) has developed a symmetrical continuation triangle over the past 38 days, making this a pattern likely to play out in the intermediate term (next six weeks to nine months).

The price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. A symmetrical continuation triangle shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks out above the upper trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior uptrend.

Target Price: $46.00 – $47.00

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Megaphone Bottom

Towerstream (TWER), a broadband provider, has developed a megaphone bottom pattern over the past 47 days.

A megaphone pattern typically consists of two successively higher highs between three lower lows, and the reversal signal occurs when the price breaks up above the second peak (the highest high) as a sign of a more decisive bullish move.

The recent broadening action tells us that trading has been out of control, but a breakout on the upside suggests we’re starting a more decisive uptrend.

Target Price: $3.25 – $3.35

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Upside Breakout

Discovery Communications (DISCA) has shown an upside breakout over the past 62 days. The price broke upward out of a trading range suggesting we’re entering a new uptrend.

This pattern represents a trading range in which prices move sideways between two parallel horizontal lines. It’s often a pause or congestion area within an existing trend though sometimes the breakout results in a reversal to the prior trend. Either way, an upside breakout through the upper resistance line signals an end to the consolidation period and the start of an uptrend.

Target Price: $87.50 – $89.00

InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123.  For a great deal on Parabolic Options, click here.


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