Technical Forecast: AHR, NCS, FAST, PHG

Which stocks are investors buzzing about today? More importantly, where are they going? Koninklijke Philips Electronics NV (PHG), Fastenal Co. (FAST), NCI Building Systems Inc. (NCS), and Anthracite Capital, Inc. (AHR) are some of the names getting the most attention. As for where each is headed, here's a closer look at their charts.

Though we'd hardly call it 'fireworks', Koninklijke Philips Electronics NV (PHG) is in a nice uptrend that could offer some low-risk gains for the next few weeks. The stock is bouncing around in a bullish trading range (framed in blue), and doesn't appear to be pressuring either side of that zone. The end result is simply higher highs and higher lows for Koninklijke Philips Electronics shares,

That said, the stock went a little ballistic today on news, though the pop from PHG did not actually break above the upper edge of the bullish trading range. The smart move from here may be to wait for Koninklijke to pull back closer towards the support line before stepping in.

Longer-term, PHG shouldn't hit any major resistance until the $40 area.


Don't look now, but Fastenal Co. (FAST) is breaking out above a major resistance line in the $40.20/$40.30 area.

As the chart below shows, this ceiling has been a problem for Fastenal since May. Though FAST could never break past it, it was making higher lows during that period. Today's pop did the trick though - Fastenal is currently at $40.79, and going strong.

We're setting a longish-term target of $55 for FAST now that the breakout has legs. However, be aware of our concern that the stock is a little too hit today, and may get reeled in and regroup before the bullishness kicks in again. It's still a great breakout move though.


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We actually recommended NCI Building Systems Inc. (NCS) back on August 12th. Though it's been a wild ride, in the bigger picture it looks as if we're still mostly on the right track.

The key to the trade is for NCI Building Systems to continue finding support at the recently-defined support level that tags the lows going back to June. Though NCS has taken a few lumps over that period, the bulls have drawn their line in the sand. And, those same bulls have been high-volume buyers on the bigger dips.

So, we're still looking for more upside than downside from NCI Building Systems. In the meantime, NCS has developed a minor resistance level at $4.30. Getting above that mark is critical.


Finally, Anthracite Capital, Inc. (AHR) appears to be in the mend.

We actually recommended Anthracite Capital as a long trade back on September 23rd, knowing the stock was a little overbought at the time, but also knowing the breakout move from AHR could heat up despite being overbought at the time. As it turns out, Anthracite Capital did indeed slide back... the impatience didn't pay off.

Now though, AHR shares have pushed off the very resistance line that signaled the breakout in the first place. Moreover, the buying volume behind this upswing has been strengthening. If you didn't step into Anthracite Capital from our late September recommendation, here's your second chance to own a stock with some significant upside potential. 


If you'd like to know of any changes in our opinion of NCS, FAST, PHG, or AHR (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.