Here are four stocks to watch with strong technical momentum.
1. Acacia Communications' (ACIA) stock has performed phenomenally after it hit bottom in mid-May around $27 just after its initial public offering. Shares of the maker of high-speed interconnect modules for cloud-computing operators then ran up to $45, pulled back to a Brexit low in the $33 area, and then took off again in a 15-point run in the last couple of weeks. On Thursday the stock closed up $2.81 at $52.43 on volume of 1.1 million shares. This looks like a stock that isn't done yet. Watch for a move to the mid $50s, with Wednesday's low of around $47 as a potential sell stop.
2. Blucora (BCOR) has rallied nicely from its April low of less than $5. The maker of software tools for wealth management and tax preparation had a big surge in late April on a strong first-quarter earnings report, went sideways for six weeks, and has been running higher since then. The stock has risen from the $9 range (where we highlighted it a couple of weeks ago) to our first target in the $12-12.50 range. There may be more upside. Watch for the stock to make it all the way to the channel top around $14.75-15.
3. Weibo (WB) has nearly tripled off its February low near $12.50. The stock of the Chinese social media company has had a series of breakouts and consolidations as it has stair-stepped up the channel. On Thursday it was up 66 cents to $32.58 on 938,320 shares. The stock, which reached a high above $34 on Tuesday before a two-day consolidation, could be headed to the high $30s.
4. Xencor (XNCR) is in a two-week flag on low volume, which is a bullish sign especially after a massive breakaway gap on big volume in late June preceded by a long base. The biotech stock was actually down 23 cents to 17.96 on 203,728 shares on Thursday. While it could still drift down further towards lateral support around $17, it does appear poised to break out of this flag and run. A move through $20 could cause it to accelerate to the mid-$20s. Short interest of 14 times the stock's average volume could fuel the advance on this one.