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VSAT - Nasdaq.  Viasat Inc has formed a potential Pennant Up after breaking out of its base.  Strong rising On Balance Volume shows the buyers well in control this stock.  The profit target for the chart pattern again coincides with a gap around the 32.00 level.  Volume must expand on the breakout.

TACT - Nasdaq.  TransAct Technologies, Inc has formed a potential Flag Up pattern after a rapid rise in price accompanied by four high volume days.   The height of the chart pattern allows one to measure a profit target for the trade, in this case around the 17.75.  Coincidentally there is a gap to be filled at around that level so could get interesting.  As with any chart pattern, volume must expand again on the breakout to complete the formation.

ILMN - Nasdaq.  Illumina, Inc has formed a Darvas Box at a brand new high.  The stock is rising in price and continues to trend well.  On-balance volume is rising and now gaining strength showing the buyers well in control.  A breakout of the top of the box would signal an entry into this stock.  A stop loss should be placed around the 85.50 to protect the position once filled.

STEI - Nasdaq.  Stewart Enterprises, Inc. has formed a Darvas Box after breaking some long resistance dating back a number of years.  Rising on-balance volume and recent volume activity suggest the buyers are very interested in this stock.  Using the Darvas Method, a breakout of the top of the box would signal a technical entry into this stock.  A protective stop loss should be placed with the broker just below the 8.50 low to protect the position.

CXW - Nyse.  Corrections Corp of America.  For the past year, CXW has formed a resistance with prices moving lower while the on-balance volume (OBV) indicator is rising.  Divergence between price and volume can give a clue to future price movement.   A breakout of this resistance could interest traders looking for a stock to hold for the long term.

COT - Nyse.  Cott Corp.  There’s a number of ways to make money in the stock market.  One is to buy cheap and sell dear.  If you’re going to buy cheap, make sure your stock has formed some sort of a bottom and is beginning to turn around, preferably attempting to break resistance of at least a few months.  Volume and on-balance volume must be rising to show that the buying pressure has resumed. 

COT would fit such a category.  Here we have a stock that’s been sold off from around $33 four years ago to below $2 after the final smash in late Feb 08.  Since March this year, we’ve had a large change in volume and OBV has been rising ever since.  A nice medium term resistance has also emerged.  A breakout of this resistance could interest traders looking to take profit around the 5.50 level. 

EXAC - Nasdaq.  Exactech Inc has formed a Darvas box at a brand new high following a large change in trading volume.  This stock is showing rising on-balance volume since the start of the year, which suggests accumulation.  A breakout of the top of the box would signal an entry into the stock.  A protective stoploss should be placed just under the 28.91 low, and trailed up as the trade unfolds.

FLIR - Nasdaq.  FLIR Systems, Inc. has formed a Darvas box at a new all time high following a series of large volume expansions.  On-balance volume is rising and the recent volume change suggests something could be brewing.  A breakout into fresh highs would signal an entry into this stock.

DR -NYSE.  Darwin Professional Underwriters Inc.  This stock has formed a Darvas Box in blue sky following a large expansion in volume and is beginning to trend.  Another example of a setup Nicolas Darvas discusses in his famous book, ‘How I Made 2 Million Dollars in the Stockmarket’.  On-Balance Volume (OBV) has been rising since the start of the year showing us that the buyers are in control of the stock.  A breakout into fresh new highs would no doubt signal an entry into DR.  Protective stops should be placed as the Darvas Method tells us, that is a tick or two under the $30.00 low.  Hold for upside on trailing stop.

AZZ - Nyse.  AZZ Inc. has formed a Darvas Box at a new yearly high following a large volume expansion.  Since the sell-off in early April, OBV has been rising showing buyers interest in the stock.  A breakout of the top of the box would signal an entry into AZZ.  Following the Darvas Method, protective stops should be kept just under the 39.00 and raised accordingly once the trade moves into profit.  There’s a gap to fill around the $58 level so should be of interest to the short to medium term trader.