Cavium Inc. (CAVM), which double-bottomed near 36 in late June and early July from a year-long downtrend, has formed a nice pattern since. The stock ran up sharply in July and August into the mid-50's, and then moved sideways for three months until breaking out on Tuesday. Stock exploded from a low of 57.10 to 62.79 before closing at 61.47, up 4.41. There's some resistance short-term at 64, but stronger resistance to watch at around 68 for this semiconductor manufacturer.
NVIDIA Corporation (NVDA) jumped another 1.51, or 1.6%, to 93.39, on 12.4 million shares on Tuesday. The stock, in a steady up-channel since the February low under 25, is in a 3-week flag formation after the big spike-up from the mid-60's in mid-November. It is moving towards lateral resistance from the highs of the flag at 95 1/4. Through there, the short-term target would be the channel top near 102-103.
Terex Corporation (TEX) popped out of a wedge pattern on Tuesday, up 1.25, or 4.2%, to 31.09 on a pick-up in volume at 1.47 million shares. The stock had gapped up from the 23 range in early November and continued as high as 31.44 before consolidating in the last week. A move through 31.44 could lead to 34 next.
Western Digital Corporation (WDC) had an inside day on Tuesday (remaining within the price range from Monday), up another 1.76, or 2.8%, to 63.85, on 4.7 million shares traded. It also looked good in afterhours with a great report, running all the way to 68 before backing off to consolidate in a nice bull-coil. The stock, which is in a rising channel off its May low under 35, looks like it wants to go higher. There’s strong resistance at 69-69 1/4 that it could approach as early as Wednesday morning.
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