[SWK] The Stanley Works ($56.460) - Machinery and Tools - SWK broke a double top at $58, holding support after 11 weeks of negative momentum, returning the stock to a near-term buy signal. This is one to consider for purchase in the mid-50s against stops of $52, which would be a spread quadruple bottom break. SWK is a 3 for 5'er.
[T] AT&T Inc. ($38.400) - Telephone - The main trend of T is positive and the stock continues to have positive technical attributes compared to the overall market. T has recently pulled back past the middle of the ten week trading band. This provides an opportunity to enter positions in T. Next support level is at 32.
[XLNX] Xilinx, Inc. ($24.470) - Semiconductors - The main trend of XLNX is now positive with the stock having violated the bearish resistance line at 29 in April and then breaking a spread quadruple top at 30. XLNX has just recently pulled back to the bottom of the ten week trading band. This pullback brings XLNX to a good buying opportunity to scale in and then add to positions once the indicators move back to a positive stance. On the downside, the first sign of trouble comes at 22, a double bottom. Next resistance on the upside is 30.
Stocks Close to a Technical Breakout
[HTX] Hutchison Telecom International Limited ($17.780) - Telephone - The main trend of HTX is positive and the stock has strong technical attributes. HTX is currently forming a triangle pattern. A move to 19.5 would break a double top and complete a bullish triangle pattern. Okay to buy HTX on the breakout. Initial support is in the 17 to 17.5 area.
[VEU] Vanguard FTSE All-World Ex-US Index Fund ($52.760) - The Non-US markets corrected as much, or more, than the US markets last week and VEU is simply a reflection of that. Having pulled back from highs of $59 the fund has visited the bottom of the 10-week trading band and thus far held above the March lows. This is a reasonable opportunity to add exposure to foreign assets at a discount with reasonable risk against stop loss points of $49.
[VIGN] Vignette Corporation ($19.300) - Internet - VIGN continues to trade in an overall positive trend here with positive RS versus the market and the peer group. Technically speaking the market is still on a shakeout pattern and after holding the bullish support line has reversed back into a column of X’s at 19.50. This is a stock that can be considered for your shopping list as the market indicators reverse using a stop loss point of 17.50, which would be a violation of the bullish support line.
[WAT] Waters Corporation ($59.130) - Electronics - WAT continues to consolidate on its chart producing a series of lower tops and higher bottom forming a triangle pattern. Watch this chart for a reversal back into a column of X’s and double top buy signal at 64 to give a double top buy signal and complete a bullish triangle pattern for new positions. Otherwise, a move to 57 would be a spread triple bottom sell signal and violation of all near-term support on the chart.