3 Stocks Gaining Momentum: ENER, FRPT, UTA

Universal Travel Group (NYSE:UTA) is developing an Inverted Head and Shoulders pattern, which many traders consider a bullish reversal pattern. We need to breakthrough the neckline before this pattern is complete. This could be a big clue as to where direction heads next. I would not be surprised to see the neckline to be broken soon. Looking at the technical daily chart of UTA, I believe that the stock is poised to continue moving upwards. Friday’s pullback has probably attracted some traders looking for an opportunity to jump into a stock that took a dip. There are several short, mid and long term technical indications suggesting that UTA could make a move to higher levels. Moreover shares of Universal Travel Group are on top of 20 and 50 day moving average and has the chance to bring 50-day moving average above 200-day moving average to bring the stock back to bull market. Next major resistance level is $6.93. So, if you like upward continuation bounce plays, take a close look at UTA.

(click to enlarge)

Force Protection, Inc. (NASDAQ:FRPT) had a big move on Friday. With this move, the stock closed above the short downtrend line on the daily chart. The technical chart below continue to show a bullish bias. The MACD line is pointing up. RSI is also increasing and +DI is above –DI. Resistance for the follow through move is $5.73. If the stock can break through this area, we should see a strong upside move. Watch FRPT closely today.

(click to enlarge)

Energy Conversion Devices, Inc. (NASDAQ:ENER) surged in the final hour of trading on Friday and closed back over $5. The real fireworks should begin if the stock can close above $5.14. As long as the stock can remain above $4.27, I like the stock.

A quick look at the technical chart:

1) Back above the 50-day moving average.
2) RSI is above 50 level.
3) Money Flow-Index is climbing
4) The +DI crossed up through the -DI this week – Bullish.
5) 20-day moving average crossed the 50-day moving average to the upside.
6) 5-day moving average crossed the 20-day moving average to the upside.
6) MACD lines are going up.

I would not be surprised to see this range to be broken soon. However, the stock is still in a long-term downtrend, so it should be considered guilty until proven innocent.

(click to enlarge)

Disclaimer: This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.

About Antonio Costa 325 Articles

Antonio Costa is a 35 year old part-time trader who trade stocks in the US market.

Visit: AC Investor Blog

Be the first to comment

Leave a Reply

Your email address will not be published.