(By Rich Bieglmeier) With the NASDAQ shining the brightest to start the week, iStock did a cursory technical tour of the NASDAQ 100 to see which stocks are likely to lead the index higher.
We circled 10 stock charts as 100 members that appear to be headed higher if Wall Street computer programs comply.
Here are the names and a brief description of our thinking.
) just set a new, 52-week closing high. Additionally, the price is moving beyond a triple test at $71. We can see AMGN moving directly to $75 in short order.
) is moving back into its post earnings pop, neighborhood. Following its most recent quarterly checkup, AMZN gapped up from $195 to more than $230 in a matter of two days. After violating its gap day low of $220, shares sunk to an intraday low of $206.37. Now, the online retail king's price is back on top of $220. If the market cooperates, iStock believes AMZN could take a peek at $230 once again.
Bed Bath & Beyond Inc.
) is another closing in on a new 52-week high. As William O'Neil of the Investor's Business Daily wrote in his book, new highs tend to be followed by newer, higher highs. On small caveat, BBBY reports earning on Wednesday; while our iEstimate points to a plus surprise for the home comforts retailer, earnings reports are always tricky for investors.
Biogen Idec Inc.
) is another major biotech hitting new highs, joining AMGN
. The same new high logic applies to BIIB as to BBBY – tongue tied? If not say BIIB – BBBY 10 times fast. There is no telling how high Biogen will fly before hitting cruising altitude as its hitting all-time highs each passing day.
We wrote about Broadcom Corp.
) in this week's iOn the Market as a stock that could break out of a triangle pattern. With the NASDAQ nearly 1% green, BRCM made us look good. If shares of the communications chip maker can top $35, then there is nothing standing in the way of $37.
) is another company running at an all-time high price, and doing it today on powerful volume. Previous spikes in volume and price have been followed by mild dips, only for the stock to resume zooming in no time flat.
) popped today, gobbling up multiple pivot highs between $41.50 to $42. With the stock breaking free of resistance, again on forceful volume, the online auction portal could be headed for a date with the upper $40s.
Henry Schein, Inc.
) is waving bye-bye to $78 and setting a 52-week high with surging volume for the past two days of trading. The medical equipment wholesaler is setting all-time highs, too. In the past 10 years, new highs on strong volume have preceded very attractive rewards for shareholders.
Is Netflix, Inc.
) about to come back to life after being dead money? Its stock chart says maybe, baby! After making contact with the grave at $60, the one-time darling turned portfolio outlaw is rising and positioned to make a move to the low-to-mid $70s. If NFLX can get beyond $73, hi-ho, hi-ho, it's off to $80 she goes.
Vertex Pharmaceuticals Incorporated
) makes it three biotechs on iStock's list. Hmm, isn't there a saying about three and trends? However, unlike the other two, VRTX isn't racing off into orbit; rather, it's more like AMZN. Shares exploded higher in early May, from $37.41 to $58.12 from one trading day to the next. WOW! Like most stocks that do the vertical lift, VRTX gave a little back, then a little more… At $55, it appears buyers got tired of the sidelines and want back in the game. If Vertex can close above $60, there's a gap down to close which could take the stock to $65.
Obviously, if the NASDAQ 100 carries on, more than these 10 stocks will join the ride. While technical analysis is in the eye of the chartist, we review 10s of thousands of charts a year, and, at times, our eyes intuitively see things that made winners out of previous trades. These 10 stood out in our review, and we hope they stand up for shareholders.