Concur Technologies (CNQR Quote) rallied to an eight-year high in December and pulled back with the broad market. It bottomed out in March and started a steady recovery that lifted price back to the high in early May. The upside then ran out of steam, with the stock grinding lower in a volatile pattern for the last six weeks.
Despite the downturn, the stock is still trading above support at the 50- and 200-day moving averages, while relative strength indicators are now turning higher. This is a bullish setup that favors another test at the highs, perhaps as early as late June. Notably, that uptick would also complete a cup-and-handle breakout pattern, with resistance at $40.
Ansys (ANSS Quote) rallied to a multiyear high at $42 in December and sold off more than 10 points before bottoming out in January. It then began a steady recovery that pulled into a test of the high less than four months later. The stock surged above resistance immediately and resumed its long uptrend.
The rally progressed nicely, with a series of waves that lifted price more than 6 points above breakout support before the most recent pullback. That decline marked out a bull flag pattern that gave way to a strong bounce on Friday. The stock is now closing in on a buy signal for a recovery that takes out the high and heads into $50.
Alan Farley provides daily stock picks and commentary with his "Daily Swing Trade" newsletter.
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