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Oct. 25, 2017, 11:12 a.m. EDT

Harry Boxer’s momentum stocks to watch this week

In focus: Conn’s, CymaBay Therapeutics, Lumentum Holdings and Nutanix

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By Harry Boxer


Simon Dawson/Bloomberg

Positive news and strong technicals are powering these four stocks in specialty retail, biotechnology and technology.

Conn’s Inc. /zigman2/quotes/206772377/composite CONN +3.26% soared 16%, or $4.45, on Tuesday to close at $31.10 on very heavy volume of 2.3 million shares traded. The move came with the company’s announcement that business had rapidly recovered after being hit hard by Hurricane Harvey last month. Volume in the session was the largest since the company’s June 6 earnings announcement. Price broke through the bull flag consolidation pattern that had formed over the last month. Momentum in the specialty retail stock, which has risen 288% since March 10, may be accelerating, and price could break through the top of its channel. Next targets: $35 and $41. Short interest of about 10 times its average volume could fuel the move as shorts cover on a rally.

CymaBay Therapeutics Inc. /zigman2/quotes/201917619/composite CBAY +7.03% jumped 10% on Tuesday, closing at $8.73 on heavy volume of 1.2 million shares traded. The move came with market anticipation of Wednesday’s clinical study results announcement on the company’s liver disease drug. Price broke out of a bull wedge consolidation pattern that formed over the past two weeks in the $8.50 zone. Importantly, this week the stock held support at the bottom of its long-term rising price channel. If the stock closes beyond the Oct. 11 high of $9.20, the next targets are $10 and $11.75, with $13 possible in the next several weeks.

Lumentum Holdings Inc. /zigman2/quotes/204419752/composite LITE +2.84% broke out of a three-month base on Tuesday, rising $3.60, or 6%, to close at $63.10 on heavy volume of 3.7 million shares traded, the biggest volume since Aug. 24. The move came after an analyst discussed the company’s strong component contribution to 3D facial recognition sensing in the new Apple /zigman2/quotes/202934861/composite AAPL -0.15%  iPhone X. If price closes above significant lateral resistance at $65, the next target is $68.

Nutanix Inc. /zigman2/quotes/207209171/composite NTNX +0.61% went up 5% and closed at $27.95 on 5.5 million shares traded Tuesday. The stock emerged from a double-top consolidation pattern and an Oct. 19 pullback to support at around $26. Price is now past the $21-$25 consolidation zone that persisted from mid-July to early October and may now be ascending to fill the gap created when earnings were announced in March. The cloud computing company has received positive analyst attention in recent weeks on its operations and earnings estimates. Next targets: $31 and $33.

See Harry’s video-chart analysis on these stocks.

The writer has no holdings in any of the stocks mentioned in this column.

Harry Boxer is founder of TheTechTrader.com, a live trading room featuring his stock picks, technical market analysis and live chart presentations.

/zigman2/quotes/206772377/composite
US : U.S.: Nasdaq
$ 26.27
+0.83 +3.26%
Volume: 110,874
Oct. 15, 2019 11:51a
P/E Ratio
10.14
Dividend Yield
N/A
Market Cap
$735.30 million
Rev. per Employee
$361,698
loading...
/zigman2/quotes/201917619/composite
US : U.S.: Nasdaq
$ 4.72
+0.31 +7.03%
Volume: 328,203
Oct. 15, 2019 11:53a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$302.97 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/204419752/composite
US : U.S.: Nasdaq
$ 54.75
+1.51 +2.84%
Volume: 189,718
Oct. 15, 2019 11:54a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.11 billion
Rev. per Employee
$453,140
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 235.51
-0.36 -0.15%
Volume: 9.98M
Oct. 15, 2019 11:54a
P/E Ratio
20.04
Dividend Yield
1.31%
Market Cap
$1065.94 billion
Rev. per Employee
$1.98M
loading...
/zigman2/quotes/207209171/composite
US : U.S.: Nasdaq
$ 25.51
+0.15 +0.61%
Volume: 733,585
Oct. 15, 2019 11:54a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.84 billion
Rev. per Employee
$310,451
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Harry Boxer is founder of TheTechTrader.com, a live trading room featuring his stock picks, technical market analysis, and live chart presentations.

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