The dull summer months are still providing a number of opportunities for the technical traders. While some stocks are starting to drift across a range due to the inactivity, there are still a number of companies that are pressing forward as their trends are just too strong to slow.
International Business Machines Corp. (NYSE:IBM), Amazon.com, Inc. (NASDAQ:AMZN) and Opko Health Inc. (NASDAQ:OPK) are three in a growing number of companies that are moving into a seasonally strong period of the year, resulting in bullish opportunities in an otherwise bland market.
International Business Machines Corp. (IBM)
IBM stock has been one of the most-hated on the Street for what feels like a decade as the technology dinosaur has struggled to adapt to the changing environment. The past few quarters of price action are showing that the long-term is starting to brighten up.
Since March, IBM shares have rallied from $120 to over $160 on some “green shoots” starting to root in their fundamental changes. Technically, IBM is one of the strongest-trending stocks among the Dow Jones Industrial Average according to the current momentum (MACD) analysis.
The shares’ slow and steady advance has allowed IBM to avoid hitting overbought situations, helping to avoid corrections and making for an even stronger trend.
Currently, IBM stock is preparing to advance above its top Bollinger Band, after a period of lower volatility. This suggests a bullish breakout over the short-term that may target a move to $180.
Amazon.com, Inc. (AMZN)
Amazon.com is the big engine that just won’t stop. The company has continued to evolve faster than peers and the stock price represents that value.
Trading over $765, AMZN stock got a bump after testing technical support in June. Like IBM, Amazon has been in a strong trend with MACD readings that reflect slow, steady and strong growth as traders look to take any opportunity to get into the shares on any weakness.
The low-volatility drive higher has resulted in a contraction or narrowing of the Bollinger Bands — usually a sign that a breakout or breakdown is nearing. In the case of Amazon, the positioning of the stock just below the top Bollinger Band tilts the odds towards a bullish breakout.
Watch for a move above $780 to get a strong and short bullish rally going that may break AMZN stock into a new trading trend.
Opko Health Inc. (OPK)
Opko Health shares are surging on positive earnings results at a time where the technical have vastly improved from both a short- and long-term perspective.
Opko will start trading above $10.50 this morning after spending the last two months in a tightening consolidation. As a result of this consolidation, OPK shares have the benefit of a confluence of support that has formed.
Currently, the 20-, 50- and 200-day moving averages are all planted within the $9.77-$9.94 zone and all have been transitioning into bullish trends themselves as the start to climb higher.
The break above $10.50 is going to attract technical traders to the stock as this will take Opko shares above their May highs and break the trend of lower lows and lower highs that has been plaguing the stock since then. This breakout signals a new intermediate-term bullish trend that the technical and quant traders are going to start jumping on, targeting higher prices over the next few months.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
