Finding bullish charts the last few days has become more difficult just due to the sheer volume of charts showing up on any broad scan. But this was one name that showed up in several scans, and from the looks of both the daily and weekly charts, I can get behind it.
Manpower has already had a good year, seeing shares up over 30% with the bulk of the move coming just in the month of February. This time period is key because the stock may be setting up for a repeat breakout performance here. Over the last two days, price has broken above key resistance over the past three months. MAN has been trading in a channel about $5 wide.
During this consolidation, we've seen the Bollinger bands tighten once again, even more so than what we witnessed before the big February run. While some may shy away from the big spike in the commodity channel index, this is something which got the stock going in February. Furthermore, we saw a push over the upper Bollinger band along with a high bullish cross in the slow stochastic.
We're seeing a repeat of the February setup. I don't believe Manpower is in for another 30% move, but I would put $100 square on the radar here, with some resistance hitting at $95 initially.
Taking a look at the weekly chart does make me question the $100 target. Based on the longer-term view, this may be a bit conservative. Manpower has put together a clear bullish inverse head and shoulders pattern over the past 15 months. The upside target here is in the $105-$110 range over the next six to nine months, which would be one heck of a mover since the beginning of 2015.
But when you consider this was an $85 stock back at the beginning of 2014, it isn't really all that unbelievable. Based on the big move that began back in June 2013, we could have a similar setup if the 13-period RSI moves over 70 and the moving average convergence divergence (MACD) sees a bullish cross in the next week or two.
Both charts have the same stop, the base of the channel/wedge. If we see a move under $82, then this one needs more time. It may even become a short at that point; however, I would want to see how the technicals align with price. This is one of my first buys on Friday once the first 10 to 15 minutes of expiration Friday subside a bit.
Editor's Note: This article was originally published at 5:48 a.m. EDT on Real Money on June 12.