These three stocks have been undergoing a squeeze, or a period of price compression that is usually resolved by a volatile move. The technical indicators suggest they will rise.
Cognizant Technology Solutions
Cognizant Technology Solutions (CTSH) provides information technology, business processing and consulting services. Its shares have been consolidating in a horizontal channel since the beginning of December.
The momentum indicators reflect the narrow range of the price action, and the Bollinger bandwidth reading is at a level which in the past has been followed by periods of volatility.
The upper end of the channel is being tested and the potential for an upside breakout is supported by the positive Chaikin money flow indication.
The stock is a buy after penetration of channel resistance using a trailing percentage stop.