Harry Boxer is watching four stocks breaking out: CAI, IMGN, IPXL and KRO. He’s the founder of TheTechTrader.com, a live trading room featuring his stock picks, technical market analysis, and live chart presentations.
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CAI International, Inc. (CAI) is seeing excellent follow-through from last Friday (July 21), when price popped all the way up to a high of $26.12. On Monday the stock gained $1.00, or 3.8%, to close at a three-year high of $26.93 on 427,600 shares traded.
Analysts have dramatically increased earnings expectations for the transportation finance and logistics company in recent weeks, and earnings will be announced on Wednesday (July 26) after the close. The stock is being traded at some of the heaviest volume this year.
Having already blown through significant resistance in the $25-$26 zone, price could easily reach $30 in the near term. The price channel shows that this could be a $40 stock or more in the longer term.
ImmunoGen, Inc. (IMGN) snapped back Monday, up $6.34, up 68 cents, or 12%, on 4.3 million shares traded. The stock bounced off the bottom of its rising channel as well as its 50-day moving average after having pulled back from its channel top in the last three weeks.
The move came on no apparent news, although the company announces 2Q earnings Friday morning (July 28). With continued momentum, price could move up to $8-$10 in the next few weeks. The biotech company is focused on therapeutics for the treatment of cancer.
Impex Laboratories Inc (IPXL) is on the move, having recently broken out of a head-and-shoulders bottoming pattern. The stock closed at $18.75, up 60 cents, or 3.3%, on 1.5 million shares traded and no news, and is now up more than 40% off its mid-June low of $13.25.
The stock saw large gains last week with news of FDA approval of a generic version of its ADHD drug, Concerta, and expected product launch by the end of 2017. The company is expected to report earnings on August 8 before market open. The next target range is $20-$23.
Kronos Worldwide, Inc. (KRO) broke out of its bull wedge consolidation pattern, gaining 54 cents, or 2.6%, on 456,000 shares traded Monday. Price for the chemicals manufacturing stock has not been up at this level in about five years.
Watch the spike high price from July 12 at $21.10. If price moves through that level, targets going forward are $23.50 and $25. The company makes titanium dioxide pigments for global paint, plastics, laminate and paper manufacturers.
