Here are four stocks with similar patterns in which they broke out, rested, and now appear to be breaking out again. You may want to consider them for your portfolio.
Cytokinetics exploded out of a base three weeks ago after beating Wall Street earnings estimates, and has settled into a sideways wedge, or pennant, pattern. On Wednesday the biopharmaceutical company's stock rallied off the bottom of the wedge, up 65 cents, or nearly 6%, to $11.63, on a pick-up in volume. The move broke the stock through its declining topsline, and it could see $13-to-$14 next.
8x8 Inc. also recently broke out and then flagged in a sideways formation. The voice over Internet protocol (VoIP) technology company's stock broke out of the formation two days ago, and continued to run on Wednesday, up 46 cents, or 4%, to $12.17 on 1.8 million shares. Next targets are $14, and then $16.
Pacific Biosciences of California broke out of its sideways pattern on Wednesday with a move up 69 cents, or 8.6%, to $8.69 on nearly 3 million shares on no news. The move clearly took the stock through the top of the wedge pattern it's been in since more than doubling to over $8 in early October. Watch for a move into the $11-to-$12 zone next.
Weight Watcher International exploded again on Wednesday, up $2.71, or 11.3%, to $26.61 on 7.8 million shares, after optimistic comments by management at the Global Consumer & Retail conference. It looks like the stock is headed toward the highs from late last year around $30.
See a video with chart analysis on these stocks.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.