Exco Resources (XCO) completed a 5 months rectangle bottom by breaking out today with an implied target of $6.70. Stop loss @ 5.54. This may well be a reversal as this stock has been on a downtrend for the last 4 years.
Wilbur Ross Jr., owns almost 25% of the XCO at an average price of $11 ! If you don’t know the guy, well he is just another billionaire. More about him here
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First up is Arch Coal (ACI) with a 5 months consolidation rectangle. Watch a close above $4.80 for an implied target of $5.80. Note that the move could be swift as 20% of the stock float is short.
Next is Walter Energy (WLT) no pattern here but interesting levels. Note the red line that has been touched four times, twice in 2013 and twice this year.
Since May 2013, Berkshire Hathaway (BRK-B) has been trading sideways. As a result a topping pattern has emerged and BRK-B is on the brink of breaking down if 109 is breached on a closing basis. Implied target is $100. Furthermore, BRK-B has been trading almost 2 weeks now below its 200 day moving avg (which rarely happens) indicating weakness.
Orient Express Hotels (OEH) is in a 3-months consolidation pattern. The top level of the box corresponds to a resistance level back in 2008, that pushed the stock down 50%. So its obvious that the current box would be significant either way UP (continuation pattern) or DOWN.
-4Q results on Feb 27/a
The bulls & bears are in a battle on QIHU (QIHU) as it has been trading in an interesting range since late Aug 2013, so its almost 5 months now. The bulls are buyers at 77 and bears are sellers at 95. Who do you think will win ?
Hospira (HSP) completed a 2 year triangle thrust in July 2013, indicating a target of $47, which has not been met yet. When a pattern is huge and has a target that seems far away, charts sometimes morph into a continuation pattern which offers a topping or pyramiding opportunity. HSP just finalized a 5-months rectangle which could be the needed pattern to attain the initial target, which measures spot on.