With the first week of 2010 nearly in the books, lets look at some mouth-watering stock charts…
JA SOLAR – JASO
JA Solar (JASO) really couldn’t have started the year any better, as many Chinese solar companies actually did pretty well. You can see that the $5.75 support has held.
The stock looks to have made a pretty clean break off the resistance, and now looks to either start creating a flag or move into more consolidation. You can also see that the RSI has once again dipped into the overbought terriorty and was met with a subsequent down day on Thursday.
If you’re long on this stock, then I like it above $6.30.
AK Steel – AKS
AK Steel (AKS) is pretty much in the same setup as JA Solar by bouncing off the support at $21.50, continuing higher, and facing the similar RSI situation.
Long-term you have got to like this stock over $21.50.
China Sunergy – CSUN
Just like JA Solar, China Sunergy (CSUN) has had a great start to 2010. After initially tweeting this stock pick and then dissecting the move, this stock has eventually gapped up into new levels.
Although RSI is in overbought area, its not too bad. This either means that the stock still has some gas left in the tank to go higher or the pullback could be mild.
Bank of America – BAC
Obviously we can’t make it through the charts without looking at one of my 2010 stock picks. At the beginning of this week I mentioned why I expect Bank of America (BAC) to have great returns in 2010, and, for the first week at least, it hasn’t disappointed.
The stock has broken nicely out of the wedge and the volume and price has continued to increase on each day after.
Short-term this stock is heading into the overbought area as you can see, with the RSI plus 70 and the MACD starting to dip a little. So expect somewhat of a pullback soon.
Learn more stock charting tips and see more examples over at Chart Pattern Manifest.