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Attention, Traders: Watch These 10 Charts in September

Five charts for the bears, and five for the bulls

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Five Stocks for the Bulls

Qualcomm (QCOM): QCOM shares still have a modest distance to go before breaking out, but the stock is worth tracking nonetheless. Trading in the mid-66s on Wednesday morning, Qualcomm is in striking distance of its 52-week high of $58.50 and its all-time peak of $68.32 set in April 2012. With strong earnings growth in rising estimates, a modest 13.5 P/E on forward estimates, and a PEG of 0.87, QCOM has the fundamental foundation to support a technical breakout. However, watch $60 as the lower support line at which the bullish pattern on Qualcomm is violated.


Yum Brands (YUM): Yum, a stock that has been featured previously on InvestorPlace for its positive technical set-up, took another shot at $75 earlier this month, only to fail and trade back down to its current level near $71. Yum remains a stock to watch for a breakout for now, but a break below support at $65 would indicate that all bets are off until the stock makes it back into the $70s.


CNH Global (CNH): This agricultural equipment manufacturer doesn’t get much attention here in the United States, but perhaps it should: It trades at 9x forward earnings — a slight discount to the 10.4x for Deere (DE) — despite being on track for stronger EPS growth in 2014 (7.9% vs. 5.8%). Investors may therefore want to take a look at this Netherlands-based company, whose shares briefly exceeded two longer-term trendlines earlier this month before giving back ground. From this point, a successful re-test likely signals that a breakout could be on the way for CNH. This potential bullish storyline is violated if the stock breaks its lower trendline at $42.


VeriSign (VRSN): VeriSign has already had a good run — up 9% in the past two months — but the stock could have further to go if the broader tape provides support. The stock has hit resistance at $50 three times, and it could see decent upside on a breakout due to its relatively high 13.2% short interest. The stock isn’t especially cheap at 19 times forward earnings, but analysts’ estimates for both 2013 and 2014 have risen in the past 90 days.


Medivation (MDVN): This company — a provider of cancer treatments with a $4.2 billion market cap — is probably the least known among the stocks on this list, but this is a bullish chart with the potential for a meaningful breakout on a move above $60. Medivation had a 5.6% short interest as of July 31, which may provide extra fuel if the stock is able to break through resistance.


As of this writing, Daniel Putnam did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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