NEW YORK (TheStreet) -- With the stock market showing strong technicals, here are five stocks to watch for continued upside momentum.
1. Cavium (CAVM) popped $2.90, or 6.24%, to $49.38 on 1.9 million shares on Tuesday. It took out a double top as it gapped above that and closed near the upper end of the range.
While it may be getting to the top of the channel, it may also be forming a mini-channel with a steeper ascent. If that happens, then it may reach up to the mid-$50's.
2. Horizon Pharma (HZNP) broke out of a wedge on Tuesday, popping 83 cents, or 6.17%, to $14.29 on 2.9 million shares. The stock has had a big run-up since August, with a pullback last month that broke the channel. It then formed a coil and held up pretty well.The stock needs a follow-through to Tuesday's pop. A move above $15.15 could position the stock to test the highs at around $18. 3. Isis Pharmaceuticals (ISIS - Get Report) is an example of a turn-around, particularly notable in some of the biotech stocks. On Tuesday, it was up $2.56, or 9.2%, to $30.37 on 5.2 million shares. The declining tops line was pierced on a breakaway gap. The moving averages have started to flatten out and curl up, and the stock may very well see a test of the 50-day at $33.68, which is the next target. 4. Merrimack Pharmaceuticals (MACK), after the pop and breakaway gap a few weeks ago, the stock coiled very tightly and quietly, and suddenly picked up. It's been up four days in a row, and on Tuesday it gained 48 cents, or 6.38%, to $8.00 on 2.6 million shares, taking out the May 1 $7.65 high. I'm looking for $10.50 to $11 on this stock. 5. Rite Aid (RAD - Get Report) followed through on Tuesday after breaking out last week, up 15 cents, or 1.85%, to $8.27 on 23 million shares. It looks like it's going to see $8.75 next. See Harry's video chart analysis on these stocks. >>Read More: Equity Pullback in the Cards but Outlook Will Brighten Later This Year >>Read More: Workday Surges: What Wall Street's Saying >>Read More: Helping Apple Haters Understand Why Android Is Doomed >>Read More: How the iPad Can Get Even Bigger At the time of publication, the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.