Though the market's overall strength today may be in question, a handful of charts appear to be setting up moves that could resist a market wide pullback. Among those names are MannKind Corporation (NASDAQ:MNKD), THQ Inc. (NASDAQ:THQI), and Qwest Communications International Inc. (NYSE:Q). Here's a closer look at each chart, and what it will take to unleash their bullish potential.
When I last looked at
MannKind Corporation (NASDAQ:MNKD) on
October 26th, my view was a mostly-bearish one. Now, I'm on the verge of switching gears and turning bullish again.... though a long footnote is needed.
I have no problem whatsoever pulling the plug at an early stage for any trade. The fact is (and veteran traders will attest to this), most trades will just be mediocre... but hanging onto a mediocre trade for too long is an easy way to let it turn into a losing trade. Since MannKind Corporation shares didn't really fall apart after falling under a key Fibonacci line in mid-October, the older and wiser side of me is smartly telling me to not get sloppy. That, however, isn't' what I'm talking about with MNKD.
No, what I'm seeing with MannKind is a nice, slow, rolling MACD crossover and a series of higher lows over the last several days. We've yet to see MNKD trade above resistance around $5.92. If we do see that happen soon though, I think the odds would favor an even-stronger move higher. The one missing ingredient so far? Volume.
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THQ Inc. (NASDAQ:THQI) first caught my eye today because of a fairly strong recovery move over the last four days, with a little bit of volume behind it. It kept my attention for an entirely different reason.
This has probably been overlooked by most chartists, but THQI is far more likely to move higher from current levels than it may be getting credit for... the reversal from a week ago occurred right at THQ Inc. shares brushed a 61.8% Fibonacci retracement line.
Between the calendar (holiday sales), the fact that the gaming industry has a slew of new games being launched in Q4, and that the whole market was pretty much writing the video game industry off may be the perfect reason to step into a THQ Inc. position now. I'd guess THQI has the potential to return to the 9.00-ish area, at least.
And finally, one way or another,
Qwest Communications International Inc. (NYSE:Q) is on the verge of a major move. I think this one's going to be bullish too.
The 'setup' has been a while in the making. Qwest Communications International share shave been working their way into the point of a triangle since March; the chart below illustrates it all. More recently, Q has developed a horizontal support line at $3.35.... one of the reasons I'm tilted in a bullish direction.
Still, this is hardly something I'd want to jump into just yet. The volume behind this most recent retest of Qwest Communications' falling resistance lines (there are two of them) has been tepid. I'd rather see Q shares consolidate a little more inside the wedge shape, and then breakout when it's more likely to follow-through.
In the meantime, Qwest is definitely something I'll be putting on the watchlist.
If you'd like to know of any changes in our opinion of Q, THQI, and MNKD (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
