Here are four stocks with good technical strength pointing to higher prices.
1. Aratana Therapeutics (PETX) has been rallying for four months after dropping from more than $20 in September to near $2.50 in February. Shares of the company, which makes biopharmaceutical products for pets, has been climbing along the bottom of their channel after pulling back in late April and early May. There's a double-top at around $7.80. If the stock breaches that level, it could rise to $9 and then $11.50.
2. Cynosure (CYNO) , which broke out in late April and pulled back for much of May, broke out of the short-term declining channel a week ago on FDA approval for marketing its new laser tattoo-removal system. It pulled back for several sessions but then popped on Wednesday on no news, gaining $2.72, or 5.6%, to $50.49 on 777,236 shares traded, the third biggest daily volume of the year. It closed right at lateral resistance, and could get a run here. The targets are $55 and then the channel top near $59.
3. Five9 (FIVN - Get Report) popped another 73 cents, or 7%, to $10.92 on Wednesday on no news. Volume of 855,000 shares was the second largest volume this year for this application software company. The stock closed above its May 11 intraday high of $10.90, and this could lead to the next target of $12 and eventually the mid-teens.
4. Infoblox (BLOX) built a nice base this year after a steep decline in the second half of 2015. The stock popped out of the base with a big gap higher on May 12 on reports of an offer to take the communications-equipment company private. After flagging for three weeks, the stock rallied on Wednesday, gaining 73 cents, or 3.8%, to $19.54 on 2.7 million shares on news it hired Morgan Stanley for activist defense. It was a big reversal off an intraday low of $18.20. In after-hours trading, the stock had a bit of a scare, but came back well. If it can get through the May 26 intraday high of $20.05, it should make it up to $22 and then $24.