HAS, ATI, TWX, SPLS, ADBE - 5 Bullish Stocks Looking to Move Higher

With the market looking to move higher, I decided to go through my watch list of nearly 200 stocks to find the stocks with the most potential to continue higher. Not only did I look for stocks with the most up side but also for the ones that had the least potential down side (meaning having the least chances of getting whipsawed with a -8.00% stop loss). After finding 20 interesting stocks, I finally broke down the list to a top 5. When selecting these stocks I took into consideration both the daily and weekly chart. I decided to ignore a few stocks that despite being in strong major up trends, are very low beta stocks which wouldn't provide a potentially strong return in the long term. In other cases, some stock's daily chart indicated strong up trends, while the weekly chart either showed a major down or sideways trend. I also decided to indicate the risk factor I considered each stock to be. This is based on if you were to take a long position at the current price. Each stock's risk factor is indicated as LOW, MEDIUM, or HIGH.

1 - HAS - BUY (RISK - LOW)

Looking first at HAS' daily chart there appears to be a potential flag pattern which would be confirmed with a break above $36.00. If the break out happens we would then have a price target up to around $40.00-$42.00. What adds strength to the potential flag confirmation is the common pattern of seeing the volume trend down during the flag formation. I consider HAS a low risk position at this point based on an -8.00% stop loss which would only get triggered below the current strong support levels at $35.00 and $33.50. Although the stochastic is in overbought territory it has given us a BUY SIGNAL.

Looking at the weekly chart, HAS is in a clear major up trend with the trend recently accelerated since the jump around $35.00. What was just 2-3 weeks ago the resistance level of the up trending channel, is now the new support level. The bollinger bands are also trending strongly higher, however it is possible for HAS to trade sideways for a little while before it can make another significant move up. Using Fibonacci Retracements, we can see now strong support around $33.00 with the potential of seeing HAS move back up towards $40.00 where its strongest resistance level stands.


2 - ATI - BUY SIGNAL (RISK - LOW)

After trading sideways for the past 4 weeks, ATI finally looks like it may start going back up. ATI started to break above the $46.00 resistance level, however it would be preferable to seeing it go towards $47.00 before jumping in. ATI has also broken back up its 50 day MA and has since continued to trend higher. ATI has good support at around $43.50 (50 day MA) and at $46.00 if it manages to remain above it this upcoming week. Last Friday's move up will influence the upper band of the Bollinger Band up which adds to the possibility of seeing ATI continue higher. The MACD has also given a BUY SIGNAL, however based on where the stochastic currently stands we may see just a minor move up before another pull back. Basically a move higher may happen more slowly than in the last minor up trend. This stock is considered LOW risk based on the fact that a move down of -8.00% would get triggered below the 50 day MA which would be enough to get a SELL SIGNAL.

Looking at the weekly chart ADBE does look like it may move higher towards $50.00 to $55.00. However, the major up trend is a broadening trend which most of the time breaks down. Based on the current price ADBE still looks like it has some good up side left in it. The ultimate test for the major trend would occur if ADBE reaches its 200 day MA. If it were to break above it, we would have a STRONG BUY SIGNAL, but a pull back from there could indicated the start of a major down trend. Despite all that, in the shorter term ADBE still looks interesting and definitely if it has the potential to get near its 200 day MA, meaning that it still has some good up side potentially left in it. The stochastic has also given us a BUY SIGNAL.


3 - TWX - HOLD (RISK - MEDIUM)

After trending strongly lower for nearly 4 months, TWX has finally broken its down trend after breaking above $28.50. TWX has since moved above its 50 day MA, whith the Bollinger Bands also starting to trend up. However, due to the pace at which TWX has been moving up and the fact that the stochastic now indicates TWX to be very overbought most likely means that the trend will be settling down sooner rather than later. A likely and preferable scenario is seeing TWX trending sideways while remaining above its 50 day MA before continuing higher. There is still some chance though that TWX may move even higher before that happens. The fact is that TWX is a HOLD as long as it remains above its 50 day MA. TWX is obviously very near its 50 day MA and an -8.00% move would be more than enough to confirm a failure of this recent BUY SIGNAL if it were to immediately move back down.


Looking at the weekly chart, we can see yet again that TWX has broken its major down trend. The next obstacle is going above the $30.00 resistance level. The next price target would then be towards $32.00 and $35.00, which if TWX manages to break would trigger a STRONG BUY SIGNAL. Due to the fact that TWX has broken back up its 50 day MA just recently and has relatively close resistance level to go through, TWX is considered a MEDIUM risk position at this point. The only reason I'm not considering TWX a HIGH risk is because it currently stands close to critical support levels which if broken, you shouldn't have to wait to incur a loss as high as -8.00% before concluding that the signal failed and that TWX may move back lower. I also consider TWX a MEDIUM risk due to the fact that the weekly stochastic has given us a BUY SIGNAL and started to trend higher while still being around oversold territory.


4 - SPLS - HOLD (RISK - HIGH)

SPLS has been moving strongly back higher in the past 2 weeks and now stands at a critical resistance level around $26.00. SPLS would give us a BUY SIGNAL if it can manage to break above $26.00. Due to the strong resistance and the fact that SPLS' stochastic is in very overbought territory, this stock is considered HIGH risk. It would be safer to WAIT and see if this resistance level is broken and maintained before getting in.


The weekly chart does show SPLS in a major up trend, but just like in the daily chart it has strong resistance to break through at $26.00. However, the stochastic has just given us a BUY SIGNAL while the MACD looks close to be giving us one.


5 - ADBE - WAIT (RISK - HIGH)

After trading down, then sideways, ADBE is now moving higher. ADBE has broken though the $33.50 resistance level while the lower Bollonger Band has started to trend higher along with the stochastic and the MACD which recently gave a BUY SIGNAL. However, the next major obstacle for ADBE is at its 50 day MA around $35.00, and until this level is broken ADBE is considered a HIGH risk position. There is relatively good chances of seeing ADBE move back to its 50 day MA, but whether it break up above it or not is impossible to say. However a move above the 50 day MA should send ADBE towards $38.00. If you are willing to take a HIGH risk risk, you could take a position at the current level and if it were to move to the 50 day MA and fall back down you could simply sell then. However, this doesn't mean ADBE can't just move back down from here. A sharp move back below $33.50 could send ADBE back toward $31.00, back in its sideways trend, or simply continue even lower.


Looking at the weekly chart, the obstacle to get back in the major uptrend is breaking back up above the 200 day MA around $35.00. However, although this is the safest play, last weeks candlestick does indicate a strong reversal, while the stochastic has given us a BUY SIGNAL while standing in very oversold territory.