A Trio Of Bases
One way to look at stocks is to ask
yourself, if I were to own one company right now, which industry would I pick? For
my money, you can’t do much better than owning an electricity generator, especially one serving the juice-thirsty West Coast.
Pinnacle West Capital
(
PNW |
Quote |
Chart |
News |
PowerRating) owns
all of the outstanding common stock of Arizona Public Service, a provider of retail
and wholesale electric service to the entire state and a generator and provider
of electricity to wholesale customers in the western United States. On Monday,
the stock broke above clear resistance at 48 a share. Ideally, it would put in a
consolidation move before breaking above a well-defined pivot.
Tenet Healthcare
(
THC |
Quote |
Chart |
News |
PowerRating) is setting
up in a cup-with-handle pattern, one of the few decent bases that I’ve been able
to find. Note how well the relative strength line held up during the stock’s
March correction.
Charlotte Russe
(
CHIC |
Quote |
Chart |
News |
PowerRating) needs to
move above 30 and tighten up, but the stock could be trying to set back up here.
The whole retail area has been trying to come back, but the action has been
sloppy and frustrating with lots of stop-outs after breakouts. You could use 32
as a pivot point. Of course, use stops on every trade.
My fellow intermediate-term traders, don’t forget that Gary Kaltbaum will be hanging out on the intermediate-term message board in TradersWorld this Thursday at 8:00 PM ET. To get there, just click the TradersWorld tab near the top of this page, and you’ll find the link to the message boards in the middle of the upper half of the page.