Even though the market's a little in the red today, a handful of stocks are managing to find some buyers. Better still, a few of these names are building a foundation for what could be more upside in the near future. Those rare gems are NII Holdings Inc. (NIHD), Sonus Networks, Inc. (SONS), General Cable Corp. (BGC), and ULURU Inc. (ULU). Since these may be some of the
only names with near-term bullish potential, a closer look is a worthy investment of time.
Don't get too euphoric over a potential run from
General Cable Corp. (
BGC); odds are it will be short lived.
The rally from General Cable over the last week and a half was prompted by yet-another test of a key support line around $32.50. The fear of closing that late-April gap is whittled away each time BGC starts to move lower but is revived by that $32.50 floor.
As for an upside target for General Cable Corp. shares, this is a case where we'll have to assume the support and resistance lines are playing a big role. That means BGC is apt to top -
at least in the short run - around $42.72.... like it did twice within the last five weeks.
Still, from $36.50 to the mid-$42 area isn't a bad run. General Cable Corp. does have an active options market, so traders can get some leverage on any move from BGC.
ULURU Inc. (
ULU) may be a completely off-the-radar, barely-hanging -onto-an-AMEX listing stock, but the upside can still be appreciated by even the most critical of investors.
The bullish red flag here is today's volume explosion; the 13% gain in ULURU's share value is compelling, but not game-changing. The question is,
why is everybody suddenly so interested in ULU? It's a rhetorical question...
'to be named later'. The key today is simply that
something's going on with ULURU Inc. that we haven't seen in ages.
With that being said, ULURU wouldn't be nearly as attractive as a breakout candidate if the stock was at or near multi-year highs. No, ULU has had the daylights beaten out of it since 2007. It's interesting
now because it's trading at next to nothing (19 cents), and the buyers are flowing back in - check out the weekly chart for ULURU Inc.
Day traders may do reasonably well with ULU, but long-termers may reap the most relative reward.
----------------------------------------------------------------------
Sign-up for Free to Receive Future Commentary
and Trading Alerts for NIHD, BGC, ULU, or SONS.----------------------------------------------------------------------
NII Holdings Inc. (
NIHD) is another breakout-on-the-verge. Like ULURU, the weekly chart reveals the scope of the rebound potential, but NIHD has just as much potential in the short run.
As the weekly chart illustrates, NII Holdings Inc. shares are running up into a falling resistance line, which actually became part of a wedge shape following lows hit earlier in this year. Just a small nudge higher from here will snap that ceiling line and should -
hopefully - free NIHD shares from their cage.
(As we said, a daily chart shows that theme more clearly.)The only tripwire from there for NII Holdings could be $25.87... where the stock topped last month. That's only a minor concern at this point, however.
We're not setting a target for NIHD at this time; your time frame and strategy should let you determine your optimal exit point.
Finally,
Sonus Networks, Inc. (
SONS) is rallying sharply today, freeing itself of a rut it fell into in May. This is the second time since January we've seen SONS make a higher low, though we've not actually seen two higher highs yet.
The challenge with a big move like the one we're seeing from Sonus Networks today is the difficult time a rally like this has in fostering any follow-through (a 9% gain can be a rough act to follow) afterwards. For that reason, it may not be wise to plow into an SNOS trade indiscriminately.
Rather, this chart is likely to be one that continues to ebb and flow; buy on the dips, keeping the bigger,
bullish picture in mind for Sonus Networks now that at least the multi-year bleeding has been stopped.
If you'd like to know when or if we issue trading alerts specifically for BGC, ULU, SONS, or NIHD, then be sure to subscribe to our free e-newsletter. It's delivered two to three times per week.
