Editors' pick: Originally published Nov. 8.
Here are four stocks to watch with strong technical momentum that you should watch.
Finisar had a beautiful move from June, when it was trading at $15, to early October, when it got to more than $30. The stock has had a 3-wave corrective pullback since then, although it is starting to move up. On Monday, it rallied 60 cents to $28.81 on 1.2 million shares on no news, edging during the session above the declining tops line of the pullback channel. A move across $30.00-$30.15 could lead to a run to the channel top in the mid-$30s.
This stock has had a nice snapback in recent sessions off its pullback from its mid-October high at $7. The stock popped on Thursday after the refrigerant services company beat third-quarter forecasts when reporting Wednesday. The stock had an inside day Friday, and popped again on Monday, up 54 cents, or 8.6%, to $6.82, on 1.2 million shares traded. A move through Monday's intraday high in the $6.95-$7.00 range should get the stock to $7.75 next, followed by $9.00-$9.50.
3. Gigamon (GIMO)
This stock has been a favorite of ours since it broke out in June in the mid-$30s, got up to near $56 in late September, before pulling back and testing the channel bottom near $45. The stock has since bounced, flagged, and then Monday broke out of the flag, gaining $3.80, or 7%, to $57.85 on 1.2 million shares on no news. Watch for this stock to make it up to the channel top at about $65 in the short term.
4. Swift Transportation (SWFT)
Swift broke out of a mini-flag on Monday, gaining $1.08, or 5%, to $23.86, on 2.6 million shares traded. The stock, in a rising channel off its June low at $14.31 -- and with a great angle of ascent and good technicals like On Balance Volume -- looks poised to test the highs from August 2015 in the $24.75-$25.00 zone. If it can punch through there and run, watch for a move to next lateral resistance from March 2015 near $28.
See Harry's video chart analysis on these stocks.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. At the time of publication, the author held no positions in stocks mentioned.