Here are four stocks breaking out and making strong technical moves that investors should watch.
1. Aerie Pharmaceuticals (AERI)
This stock, which more than doubled to the $40 area in September, pulled back in October but has rallied in the last 10 days, bouncing off its 50-day moving average and its channel bottom.
On Tuesday it was up another $2.20 to $41.95 on no news, getting right back up to its recent highs. Watch for a move toward the channel top near $49.
2. Finisar (FNSR)
Finisar, which has been acting great all year, spiked up on earnings in September and kept on running. When the optical-component stock reached resistance in early October at the rising channel top, it had a 3-wave corrective pullback to the channel bottom and 50-day moving average, and then broke back out again last week. On Tuesday, it gained another 85 cents to $31.70 on 1.4 million shares traded. The short-term target is $35-$37, and then the low- to mid-$40s in the intermediate term.
3. Tower Semiconductor (TSEM)
Shares of this company popped through a resistance zone on Tuesday, gaining 95 cents, or 5.7%, to $17 on 2.4 million shares traded. That's the second biggest volume on an up day since February 2015, and it came on news that the Israel-based chipmaker reported a third-quarter profit. Watch for a quick test of the $18.20-$18.30 zone last reached in early 2015. Beyond that, it could make a run at the channel top near $23.
4. Vuzix (VUZI)
This stock popped through its 50-day moving average and lateral resistance on Tuesday, gaining 65 cents, or 8.7%, to $8.05, on 528,900 shares traded. Stock in the wearable-device maker did pull back from its intraday high at $8.25, but momentum is strong. The stock has been up in six of the last seven sessions and looks poised to make a run at the September highs in the $9.50-$9.75 zone.
See Harry's video chart analysis on these stocks.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.