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Feb 02

Adding longs in $GMCR, $OCN, $ARUN

Just looking over a few charts this weekend, here’s 3 names that caught my attention that I want to add on the long side. You’ll always get pretty straightforward analysis from me, nothing too complicated, just tried and tested setups for good risk-reward trades.

 

Green Mountain Coffee ($GMCR)

I like how $GMCR has been acting, it’s had two big volume advances in the last six months, the first could easily be dismissed as a short-covering move given the way it retraced it all, but the second looks very different, a high volume gap and run, that shows real conviction. The fact it’s since consolidated in a tight range and volume is starting to pick up again on the upside tells me this is getting ready to run again. ¬†Incidentally the two price lines there in the low $40′s were ones I’d drawn as support on the way down, so it’s interesting to see the action there.

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Ocwen Financial ($OCN)

Some might want to see a close above an intraday high to confirm a breakout but I prefer to go with daily or weekly closes and in both cases $OCN has already done its job and on increased volume too.

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Aruba Networks ($ARUN)

Aruba is enjoying a steady stair-step advance littered with accumulation days (rising on increased volume). I’ve added the weekly chart for some context, as that gap and run above the descending trendline of weekly closes marks the point where the run of high-volume advances began, and there’s still plenty of blue sky above.

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