4 Interesting Stock Charts to Watch for Next Week's Trading

NEW YORK (TheStreet) -- Many of the stocks we follow continued strong on Thursday, and here are four that appear to have more room to run.

Canadian Solar (CSIQ), after an earnings blowout on Wednesday on huge volume of 19 million shares, had a nice follow-through on Thursday on nearly 11 million shares, up $1.37, or 4.4%, to $32.40. It's right at the resistant zone from the April high and above the recent highs of $31.90, reaching as high as $32.86 intraday on Thursday.

With that kind of momentum, the stock may very well follow through and test the $36.50 to $36.75 range, which is the short-term target. Beyond that, the March highs up around $44.50 may be tested. Shares currently trade around $33, up 10% year to date.

Enphase Energy (ENPH) is looking very interesting. Last month the stock broke out above the shoulder of a massive head-and-shoulders bottoming pattern. The stock then consolidated, had a big pullack on low volume, and then another pop with the breakaway gap on volume, followed by a flag-type consolidation. On Thursday the stock jumped 84 cents, or 7.2%, to $12.39 on 1.9 million shares.

Looking at the longer-term chart, this stock is at the midway channel of a long-term pattern. If it can accelerate through the mid-channel trendline, it could get to the low-to-mid $20's, with the first target $16 1/2-17. Shares currently trade around $12, up 91% year to date.

Globalstar (GSAT), one of our Top 25 stocks for the year, had a very good day on Thursday. The month-wedge it had formed was broken with a pop of 6.1%, or 23 cents, to $4, on 6.5 million shares. If it takes out $4.20, which is the next target, then we'll looking at a retest of the highs at $4.53. If that occurs, the targets are $4.74 to $5, and then, eventually, $5.50 to $6. Shares, currently at $4, are up $126 year to date.

J.C. Penney (JCP) has been consolidating the last few months, but the overall structure shows a left shoulder, head and flat right shoulder, indicative of a possible head-and-shoulders bottom developing. It's in a big wedge pattern with lateral resistance right at current levels. On Thursday, it gained 39 cents, or 4.1%, to $9.74, closing at the high for the day. In afterhours, it popped on earnings, getting to just under $11, before closing at $10.05, up 31 cents.

Given that close above resistance, the stock has a fair shot, if it gets some volume, to make it to the $12-$12.50 zone. Shares, at $9.40, are up 2.8% year to date.

See Harry's video chart analysis on these stocks.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

TheStreet Ratings team rates PENNEY (J C) CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate PENNEY (J C) CO (JCP) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and deteriorating net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is very high at 2.03 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Multiline Retail industry and the overall market, PENNEY (J C) CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PENNEY (J C) CO is currently lower than what is desirable, coming in at 33.06%. Regardless of JCP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, JCP's net profit margin of -12.56% significantly underperformed when compared to the industry average.
  • JCP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 28.13%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The change in net income from the same quarter one year ago has exceeded that of the Multiline Retail industry average, but is less than that of the S&P 500. The net income has decreased by 1.1% when compared to the same quarter one year ago, dropping from -$348.00 million to -$352.00 million.

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