Tech may have had some off days recently, but it’s still one of the strongest sectors in the market. You just have to know which tech stocks are most likely to trend higher in the current climate.
That’s where technical analysis can really help narrow the field. The Profit Scanner powered by Recognia is just the tool for the job.
Here today are four computer hardware/software stocks that the Profit Scanner sees as bullish contenders in the near future:
4 Tech Stocks With Great Bullish Potential: Castlight Health (CSLT)
Click to Enlarge Castlight Health (CSLT) just made a pattern that bullish traders love to see: the Double Bottom. The cloud software provider completed the pattern on Monday, and from here the Profit Scanner is looking for CSLT to rally from its current $9.75 level to $12-$12.60.
You can see the Double Bottom marked in red on the chart, as Castlight hit two distinct lows around the same price level, then eventually shot up above the highest high. Since CSLT failed to break below support and instead turned higher, this tells us that the stock is likely reversing to a new uptrend.
As mentioned above, the Double Bottom carries a specific target price range. In this instance, the Profit Scanner expects 23%-29% further upside for CSLT in the intermediate term.
4 Tech Stocks With Great Bullish Potential: Vasco Data Security International (VDSI)
Click to Enlarge Vasco Data Security International (VDSI) is up 36.5% in the last three months and has put in a series of bullish signals — but it looks like the share price isn’t done climbing yet.
On June 3, VDSI completed an Ascending Continuation Triangle with a target range of $35.25-$36.75. That pattern is shown on the chart, as well as two more recent bullish signals from technical indicators.
On June 5, VDSI’s Commodity Channel Index crossed above a +100 reading, then on June 9, the Short-Term KST crossed above its moving average, both of which signal bullish momentum.
4 Tech Stocks With Great Bullish Potential: Automatic Data Processing (ADP)
Click to Enlarge Automatic Data Processing (ADP), better known as the people who process your company’s payroll — and report broad trends in U.S. private-sector jobs — also has a strong chart at the moment. All through June, ADP’s put in a series of bullish signals, three of them on Wednesday alone.
That day, the stock crossed above its 200-day moving average — an excellent sign for its long-term health. It also completed two other patterns: an Outside Bar, and an Engulfing Line.
In a bullish Outside Bar, the latest trading range completely encompasses the prior bar, suggesting that selling pressure is beginning to exhaust itself and the stock is due to reverse higher. Similarly, a bullish Engulfing Line looks like a white candlestick that’s much larger than the prior black candlestick. That’s further evidence that buyers are beginning to overwhelm sellers and ADP’s downtrend may soon come to an end.
4 Tech Stocks With Great Bullish Potential: ChinaCache International Holdings (CCIH)
Click to Enlarge Last but not least is ChinaCache International Holdings (CCIH), a Chinese IT services and consulting firm. Like ADP, Wednesday was an excellent day for ChinaCache: it put in six bullish signals that day.
CCIH crossed above both its 21-day and its 50-day moving averages, suggesting the strength will continue in both the short- and the intermediate term. The stock also completed a bullish Continuation Wedge, another intermediate-term bullish signal.
In this pattern, you’ll see two converging trendlines, both slanting downward against the trend. When the stock breaks above the upper trendline, it suggests that bulls have successfully pushed the stock back into its uptrend.
Based on this Continuation Wedge, the Profit Scanner expects CCIH to continue higher from $15 to $16.80-$17.40, or a 12%-16% gain from current levels.
On Wednesday, CCIH’s Fast Stochastic, Williams %R and Momentum indicators all turned short-term bullish. In other words, traders looking for quicker profits may want to consider ChinaCache as well.
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.
