Six Off-the-Chart Bullish Plays

#1 – Diamond Offshore Drilling (DO[1])

Worldwide offshore oil and gas drilling contractor Diamond Offshore Drilling (DO[1]) has formed a massive
bottom known as a cup-and-handle[2] —
a very bullish formation — coupled with a gold cross (also bullish), and recently flashed a buy signal from the Moving
Average Convergence/Divergence (MACD) indicator.

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In order for DO to make the final breakout, it must penetrate the triple-top at $94.50. If it can do it, the price objective is at least $110 with
a longer-term goal of $150. DO pays a dividend of $8 per share, giving it a dividend yield of 8.8%.

NEXT – Bullish Play #2 – Family Dollar Stores

#2 – Family Dollar Stores (FDO[3])

Family Dollar Stores (FDO[3]) operates a chain of discount retail stores. As one of the great “dollar
stores,” it often leads the retail group.

The chart is loaded with bullish technical signals including a gold cross, a new buy signal from the stochastic and a build up of buying volume.

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All that it needs to complete the picture is a breakout from the triangle[4].
To do that it must close above $33 on high volume. The target is $42.

NEXT – Bullish Play #3 – Teva Pharmaceutical

#3 – Teva Pharmaceutical (TEVA[5])

Teva Pharmaceutical (TEVA[5]) engages in the development, production and sale of a range of generic
and branded pharmaceuticals, biogenerics and active pharmaceutical ingredients (APIs) worldwide.

The long-term chart shows a stock that has never been in a bear market. The recent resistance line is merely a pause in its long-term upward march,
and it was broken by heavy buying in April. Teva ran to a new all-time high above $55, and then pulled back on profit-taking.

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Buy TEVA now. It is a cornerstone stock that should be part of every high-quality portfolio.

Learn why TEVA is the best health care stock[6] to own.

NEXT – Bullish Play #4 – United Technologies Corp.

#4 – United Technologies Corp. (UTX[7])

United Technologies Corp. (UTX[8]) provides technology products and services to the building systems
and aerospace industries. Its stock has built a strong base that began in October 2008. In early July, UTX flashed a bullish gold cross. Then, in
mid-August, it broke out from a quadruple-top.

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This is all very bullish technical stuff that should result in much higher prices for UTX with a minimum target of $70 to $75.

NEXT – Bullish Play #5 – Vanguard FTSE All-World ex-US ETF

#5 – Vanguard FTSE All-World ex-US ETF (VEU[9])

Vanguard FTSE All-World ex-US ETF (VEU[9]) seeks to track the performance of the FTSE All-World
ex-US Index, which is made up of approximately 2,200 stocks of companies located in 46 countries. Sometimes we see a chart that technically seems
to have it all, and this is one.

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Note the very bullish cup-and-handle followed by a gold cross, which is executed at the beginning of a bull channel and accompanied by very high
buying volume. The MACD has issued a buy signal, so it is possible for VEU to break above the bull channel with a target of $54 or even higher.

NEXT – Bullish Play #6 – Honeywell International

#6 – Honeywell International (HON[10])

Honeywell International (HON[10]) is a diversified technology and manufacturing company. The stock
tripled in price from late 2002 to early 2007. But, in June 2008, the stock broke support and plunged. By November, it was trading for less than $24.

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The stock established a solid “W” base with support at the 200-day moving average at $32. Then, on Aug. 24, HON broke out from a triple-top on very
high volume — a signal that could drive the stock to my target of $50.

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• Technical Analysis IQ Test[12]
• Top Five Stocks for September[13]
• Our Top Stocks, Options and Income Plays[14]
• 10 Stocks to Avoid for the Rest of the Year[15]