Three Ways to Start Your Weekend Right: ZNGA, GXP, and ATI in Focus

Feb 1, 2013 7:36:12 AM PST | 468 View(s) | No Comment(s) - Post a Comment Rating

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StockHQ:

ZNGA
$3.38 +$0.01 +0.30%
GXP
$24.33 +$0.27 +1.12%
ATI
$29.77 +$1.21 +4.24%

While the media may be saying one thing about Allegheny Technologies Incorporated (NYSE:ATI), Zynga Inc. (NASDAQ:ZNGA), and Great Plains Energy Incorporated (NYSE:GXP), their charts might be saying something else. Here's a closer look at why each of these names is a budding superstar, whether or not the masses seem to agree.

The company is supposed to be nothing without Facebook, and to be fair, Zynga Inc. did take a hot when the company severed its ties with the world's biggest social media site. Yet, the nearby chart tells the tale - ZNGA has rallied 32% since its early November lows, crossing above several key moving average lines in the process. If this was "just a little volatility", the bulls wouldn't have gotten this far.

What's the deal? Not that ZNGA still isn't overpriced, but the reality is, when your stock falls 85% in less than a year, you've been right-sized. [Translation: Shares weren't worth $15 apiece in February of 2012, but on trailing revenue of $1.28 billion, the market cap of $2.12 is quite normal. Zynga still isn't producing profits, but frankly, that's the last thing most technology speculators care about - stocks can really without income.

Allegheny Technologies Incorporated has been working on a rebound for quite some time, but even when it was "doing well" it wasn't enough; the stock just couldn't get above key resistances lines like the critical 200-day moving average line. Indeed, on the nearby chart you can see that ATI was pushed back from the 200-day line in early January, and was halted there again this week...

... until today. As the chart also shows, ATI has popped above the 200-day line today. Granted, it also left a small gap behind, and there's not a lot of "umph" behind the move. Shares may even need to slide back to close the gap before moving on. But, the heavy lifting has been done. Now the Allegheny Technologies bulls need to regroup and restart the effort with a good technical base. As was noted, though, the hard work has been done. Also notice there's been good volume growth on the way up so far.

Finally, Great Plains Energy Incorporated has been brewing up a storm for a while, but that storm in its full fury wasn't unleashed yesterday/today with a cross above the 200-day and 100-day moving average lines.

The nearby daily chart of GXP illustrates that crossover and buildup right before it, but to fully appreciate just how much upside there is here, you have to see this weekly chart of Great Plains Energy. Though the near-term bullishness from the stock is compelling, you can also see it's all just part of a much bigger longer-term uptrend. Though a tad overextended in the very short run, GXP could ultimately hit $23.50 before hitting any major resistance.

Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.