These five "Rocket Stocks" may have some fundamental catalysts, indicating a potential for "blastoff," but what do their charts and indicators look like?
"Rocket Stocks" is TheStreet's list of companies with short-term gain catalysts and longer-term growth potential.
Will the charts help or hurt these rocket stocks?
Shares of Cisco Systems (CSCO - Get Report) have really not made any progress the past 12 months. Swings to the downside have gotten more stressed. Though prices are back above the 50-day and 200-day moving averages for Cisco, the on-balance-volume, or OBV, line has only made a slight recovery, and the rate of price advance has slowed in March from February.
This longer-term weekly chart of Cisco, above, shows the trading range that has dominated for more than a year capping the upside around $30 and downside around $22. The OBV line on a weekly timeframe is neutral, and the MACD oscillator just crossed the zero line for a buy signal. With prices holding on just above the 40-week moving average line, the next move in Cisco could go up or down.
The price of Halliburton (HAL - Get Report) has made only a shallow recovery from its January/February lows. Prices have managed to rally above the 50-day and 200-day moving averages, but the OBV line has improved only a nominal amount. The higher-price highs made in March and April were not matched by higher momentum readings but rather lower readings. This is a bearish divergence and could suggest that prices decline back below the 200-day and maybe the 50-day moving average line.
This longer-term chart of Halliburton, above, shows that prices just rallied above the 40-week average line. The OBV line inched up the past two months, and the MACD oscillator is still below the zero line.
Southwest Airlines (LUV - Get Report) has a chart that looks capable of supporting further price gains. Prices are above the rising 50-day and rising 200-day moving average lines. The OBV line has been rising since early July and tells us that buyers have been more aggressive than sellers of Southwest. There is a bearish divergence between the higher highs the past two months and lower momentum readings. I don't look for this divergence to turn into a major downside event.
This longer-term chart of Southwest shows that prices have been stalled for over a year, but recently the slope of the 40-week moving average line turned up. The MACD oscillator is in a bullish configuration above the zero line. Southwest could take off over $50 in the weeks ahead.
This weekly chart of Microsoft is all bullish. Prices are above the rising 40-week average line. The OBV line is creeping higher, and the MACD oscillator is poised for another buy signal. A breakout to new highs is probably in the cards for Microsoft.
Public Storage (PSA - Get Report) has been in a strong uptrend since late June/early July. Prices are comfortably above the rising 50-day and 200-day moving averages. The OBV line has confirmed the price rise all the way up.
This longer-term weekly chart of PSA is impressive. Prices have nearly doubled from three years ago. The 40-week moving average line curves up nicely. The OBV line confirms the "uptick" in the price chart. There is a bearish divergence between prices making new highs and the momentum study making a lower high, but it hasn't stopped the rally.