April 21st, 2008

New High List: NGS, HON and R

As mentioned earlier (see April 17 post), in addition to recent IPO’s, the new high lists offer a fertile ground for investment opportunities as the market hopefully moves onto firmer ground. As I said earlier, these lists are expanding:

In addition to the many energy, farming, materials and transportation stocks on the list, some interesting new names were added:

  • NGS (National Gas Services Group), which completed a beautifully formed cup, broke through a resistance trendline at the beginning of April and has moving to new highs since:
  • Note the favorable volume growth. Next target of 40, nearly 50% above current levels, is the all-time high resistance trendline.

  • HON (Honeywell International), which appears to be on the verge of breaking through the top boundary trendline of a year-old channel:

    A successful breach of the upper resistance trendline might carry the stock (assuming favorable general market conditions) to the 85-90 area, a move that mirrors the rise preceding the channel formation.

  • R (Ryder System), which requires investors who believe in the impact of long-lived trendlines. As the market has been struggling under the weight of the recent credit crises, R has been struggling to finally break clearly above the restraints of the long term resistance trendline at 41 that stretches back to the early ’90’s. I call this a “life cycle investment” opportunity (a company that is at the beginning of a new life cycle of growth):

    Ryder also displays a favorable volume pattern and looks like a stock that the herd is charging. It could be a one of those stocks that you can buy, put away and ride for an extended move as it moves up its life cycle curve brought on be an evolving corporate evolution.

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