As the stock market moves ever higher, the opportunities to find compelling charts are becoming more difficult. Let’s face it: the vast majority of charts are showing either relentless strength, especially in technology and retail; or desultory underperformance, most notably in energy and materials.
Fortunately, there still are some chances for the technically inclined to find charts that appear set for sizable moves. Although compelling cases can be made both for and against a continuation of the bull market, the following stocks can provide you with some beta no matter which way you’re looking to bet:
Charts for the Bullish
The large-cap health care giants might not be the most fertile ground for technicians, but the same isn’t true for the small- and mid-sized stocks in the sector. And right now, five stocks are on the verge of breaking out if the broader market can hold up:
Quest Diagnostics
NYSE:DGX
Tuesday’s close: $60.62
52-week high: $61.47
Percent move needed for breakout: 1.4%
Varian Medical Systems
NYSE:VAR
Tuesday’s close: $69.97
52-week high: $71.95
Percent move needed for breakout: 2.8%
DENTSPLY International
NASDAQ:XRAY
Tuesday’s close: $40.09
52-week high: $40.37
Percent move needed for breakout: >1%
The Cooper Companies
NYSE:COO
Tuesday’s close: $79.97
52-week high: $80.25
Percent move needed for breakout: >1%
Haemonetics Corp.
NYSE:HAE
Tuesday’s close: $70.08
52-week high: $70.59
Percent move needed for breakout: >1%
Click to Enlarge Outside of health care, Coca-Cola (NYSE:KO) stands out as an interesting technical play from the bullish side. The stock might be pushing the high end of its three-year valuation range, but it closed Tuesday at $71.87, surpassing several September intraday highs in the low- to mid-$71s. Technical factors are less likely to move a stock of this size than they would be for a smaller name, but there might yet be further upside in this Dow stalwart.
NEXT: 6 Charts for Bearish Traders >>
Charts for the Bearish
Materials and transportation stocks have lagged the market by a wide margin in recent weeks, so it’s no surprise that a number of stocks from these groups would be on the cusp of a breakdown. While many of these names have already experienced significant downside in the past 12 months, all are perched at key levels that could be violated if the broader market turns south.
Peabody Energy
NYSE:BTU
Tuesday’s close: $29.85
52-week low: $29.78
Percent move needed for breakdown: >1%
James River Coal
NASDAQ:JRCC
Tuesday’s close: $5.31
52-week low: $5.01
Percent move needed for breakdown: 5.6%
With respect to these two coal stocks, note that Alpha Natural Resources (NYSE:ANR) broke below its early October low on Monday, while Patriot Coal (NYSE:PCX) and Arch Coal (NYSE:ACI) both established 52-week lows earlier this month — not the best sign for BTU and JRCC.
CH Robinson Worldwide
NASDAQ:CHRW
Tuesday’s close: $65.35
52-week low: $62.30
Percent move needed for breakdown: 4.7%
Baltic Trading
NYSE:BALT
Tuesday’s close: $4.11
Recent low: $3.79
Percent move needed for breakdown: 7.8%
Barrick Gold
NYSE:ABX
Tuesday’s close: $43.80
52-week low: $42.50
Percent move needed for breakdown: 3.0%
Allied Nevada
AMEX:ANV
Tuesday’s close: $31.49
Level to watch: $30.00
Percent move needed for breakdown: 4.7%
As with the coal stocks, the performance of these gold miners’ industry peers doesn’t bode well for Barrick and ANV. AngloGold Ashanti (NYSE:AU), Kinross Gold (NYSE:KGC), Gold Fields (NYSE:GFI), IAMGOLD (NYSE:IAG) and Harmony Gold Mining (NYSE:HMY) are all among the many gold-related names that have established 52-week lows so far this month.
As of this writing, Daniel Putnam did not hold a position in any of the aforementioned securities.
