I’m Watching These Stocks
Alexandros Yfantis | Mar 02, 2015 10:42AM ET
- eBay
- Nike
- Canadian Solar
eBay (NASDAQ:EBAY) shares are trading near their 2-year highs. We are close to important resistance levels and traders should watch this stock closely as the upward potential is huge if we see a breakout. eBay has been consolidating for 2 years inside a trading range of $60 to $46. As can be seen in the weekly chart below, we are currently testing the resistance around $60. If we get a confirmed breakout above this trading range it will be a very important event. Breakouts like this are huge. The chart has formed a bullish flag with the pole starting from $26,$86 to $57. So the upside potential if we get a confirmed breakout will be a move towards $90.
Nike (NYSE:NKE) has made a breakout above the recent bullish flag formation and has also broken above the Ichimoku cloud resistance. The buy signal of the breakout has a target of $106. We could see a short-term pull back towards $95 in order to make a back test of the breakout level of the cloud, but I’m pretty confident we should expect a move above $100 in this stock according to this bullish flag pattern.
One of my favorite patterns as you have already seen is the bullish flag. The weekly chart in Canadian Solar (NASDAQ:CSIQ) provides such an example with the upside potential being huge if buyers manage to breakout the stock price above $35 with potential target the $70-$80 zone.
There is a huge bullish flag being formed and we are currently under the upper flag boundaries and close to important resistance area. Price is also below the Ichimoku cloud, another indicator that will confirm the breakout if we break above $35.
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