As U.S. equity markets continue to trade in bullish fashion, Jonas Elmerraji, Senior Contributor with Stockpikr.com, in his article “5 Stock Charts You Need to See,” strongly suggests that it’s not time for investors to “sit on their hands” and wait for a pullback. Instead, he identifies five issues that are technically setting up for more imminent gains to come.
“Technicals are a study of the market itself,” Elmerraji said. “Since the market is ultimately the only mechanism that determines a stock’s price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street’s biggest financial firms, and individual investors to get an edge on the market.”
At the top of Elerrraji’s list is Google. “2013 has already been a good year for Google (GOOG). Despite a temporary pre-earnings sell-off, shares of the search giant have rallied close to 9% so far this year. And now, it looks like this stock could have further to run this year.” Elmerraji goes on to say “the price action in Google doesn’t get much simpler. Google is currently bumping its head up against new highs, testing the same $770 level that shoved shares considerably lower back in October. Investors should be watching for a breakout above that price.”
Next on Elmerraji’s list is ConocoPhillips (COP) “Like with the Google chart, you don’t need to be an expert technical analyst to figure out what’s going on in COP right now,” he stated. “This stock is trading higher in a channel. The support and resistance levels on the chart have acted as consistent barriers for COP’s price action since the summer –and now, they give us a high probability range for this stock to trade within. As you might expect, the ideal time to be a buyer is on a bounce off of support.”
Rounding out his set of five picks, complete with detailed technical analysis are BHP Billiton PLC (BBL), General Growth Properties (GGP) and commercial food service firm Sysco (SYY).