PBR - Darvas Box

PBR - NYSE. Petroleo Brasil SA Petrobras has formed a Darvas box entry at an all time high following a recent volume spike we had in April.  The buyers are well in control of this stock as can be seen by the steadily rising OBV.  Using the Darvas Trading Method, I would place a buy stop order to purchase the stock if it breaks out of its box, above the 77.61 high.  I would place a tight Darvas stoploss just below the box, around 67.50 to protect the position.

ZOLL - Darvas trade

ZOLL - Nasdaq.  Zoll Medical Corp has formed a Darvas box near a previous historic high.  The stock is rising in price and the buyers are well in control here as can be seen by the strong, rising OBV and recent volume expansions.  This suggest a likely further move to the upside.  A breakout of the box on expanded volume would certainly signal an opportunity to become involved in this stock.  Potential target price of around $54.

CWTR - Turning Around

CWTR - Nasdaq.  Coldwater Creek Inc has been bottoming for most of this year after being sold off from its highs near $30.  The buyers are now coming back as can be seen by the turn around in the OBV since mid January 08.  A health sign of early accumulation taking place.  A breakout of 7.00 on increased volume, perhaps ~ 10 or 15m would constitute an entry.  Has gaps to fill at around $11 and the $17 so a lot in favor here for the medium or long term.

ROYL - Flag Up

ROYL - Nasdaq. Royale Energy has formed a Flag Up following a sharp rise in price on a large increase in volume. The pattern has a measurable target price of around $15 that can be obtained by adding the height of the flagpole ($5.50) to the potential point of breakout ($9.50).

ACOR - Darvas Box entry

ACOR - Nasdaq.  Acorda Therapeutics has formed a Darvas box entry at a new high following a large expansion in volume.  Rising OBV shows us the buyers are in control of this stock.  A breakout of the top of the box ($33.00) would constitute a valid entry.  A tight Darvas stoploss should be placed just below the $29.00 and raised up after a valid breakout occurs.

FRPT - Head and Shoulders Bottom

FRPT - Nasdaq.  Force Protection has completed a Head and Shoulders Bottom after breaking out above resistance yesterday.  I would like to see the volume expand more, perhaps to around the 3-4m before getting involved.  There’s a lot in favor here - OBV is rising since the March low implying the buyers have resumed control of the stock.  The target price for the pattern is around 9.00 and there’s a pretty big gap to close around the 15.00 so a good stock to keep an eye on.

EXAC - Darvas box trade

EXAC - Nasdaq.  Exactech Inc has formed a Darvas box at a brand new high following a large change in trading volume.  This stock is showing rising on-balance volume since the start of the year, which suggests accumulation.  A breakout of the top of the box would signal an entry into the stock.  A protective stoploss should be placed just under the 28.91 low, and trailed up as the trade unfolds.

FLIR - Darvas Box trade

FLIR - Nasdaq.  FLIR Systems, Inc. has formed a Darvas box at a new all time high following a series of large volume expansions.  On-balance volume is rising and the recent volume change suggests something could be brewing.  A breakout into fresh highs would signal an entry into this stock.

DR - Darvas Box trade

DR -NYSE.  Darwin Professional Underwriters Inc.  This stock has formed a Darvas Box in blue sky following a large expansion in volume and is beginning to trend.  Another example of a setup Nicolas Darvas discusses in his famous book, ‘How I Made 2 Million Dollars in the Stockmarket’.  On-Balance Volume (OBV) has been rising since the start of the year showing us that the buyers are in control of the stock.  A breakout into fresh new highs would no doubt signal an entry into DR.  Protective stops should be placed as the Darvas Method tells us, that is a tick or two under the $30.00 low.  Hold for upside on trailing stop.

AZZ - Darvas Box

AZZ - Nyse.  AZZ Inc. has formed a Darvas Box at a new yearly high following a large volume expansion.  Since the sell-off in early April, OBV has been rising showing buyers interest in the stock.  A breakout of the top of the box would signal an entry into AZZ.  Following the Darvas Method, protective stops should be kept just under the 39.00 and raised accordingly once the trade moves into profit.  There’s a gap to fill around the $58 level so should be of interest to the short to medium term trader.

RAME - Darvas Box Trade

RAME - Nasdaq.  RAM Energy Resources Inc. has formed a Darvas box at a new historic high following a couple of recent large volume expansions.  This is the classic pattern that Nicolas Darvas constantly looked for and eventually made his fortune with.  When trading the Darvas Method, we place a Buy Stop order with the broker to purchase the stock the moment it pushes through the top of the box, in this case 6.84. 
Automatically upon being filled, a Stop Loss is entered a fraction below the bottom of the box to protect the position, here just under the 5.90 low.  This stop is then trailed upwards to lock in profits as the trade unfolds.

APPX - Darvas Box

APPX - Nasdaq.  APP Pharmaceuticals, Inc. has formed a Darvas box at new yearly high.  On-Balance Volume (OBV) has been rising since the beginning of the year.  This suggests the stock is being accumulated.  A breakout of the top of the box ($17.00) would signal an entry into the stock.  When trading the Darvas Method, a stoploss should be automatically placed just under the bottom of the box, in this case, a tick or two under $15.50 to protect the position.

DMLP - Pennant Up

DMLP - Nasdaq.  Dorchester Minerals, L.P. has formed a potential Pennant Up following three days of strong rising prices accompanied by large volume.  The best Pennants to trade are often those that form tight and fast following a good breakout.  As is the case with any chart pattern, the volume must expand on the breakout with a decisive closing price above resistance.  Measurable target based on the height of this formation is around the $42.00.

BUD - Darvas Box

BUD - Nyse.  Anheuser Busch Cos, Inc. has formed a Darvas Box entry at an all time high, following two large expansions in trading volume.  Strong rising OBV shows the buyers well in control of this stock.  A breakout of the top of the box would constitute a valid entry into BUD.  Stop loss a tick or two below 59.00 should be used to protect the position.

ANPI - Head And Shoulders Bottom

ANPI - Nasdaq.  Angiotech Pharma Inc has formed a Head & Shoulders Bottom after a long down slide from highs near $30.  OBV is beginning to turn around which suggests the stock is no longer being sold off.  Again, I’d like to see a bit more volume on the breakout, perhaps 2m or more to confirm the validity of the pattern.  There’s a big gap to fill around the 7.50 so could get interesting.

COT - Resistance and Rising Volume

COT - Nyse.  Cott Corp.  There’s a number of ways to make money in the stock market.  One is to buy cheap and sell dear.  If you’re going to buy cheap, make sure your stock has formed some sort of a bottom and is beginning to turn around, preferably attempting to break resistance of at least a few months.  Volume and on-balance volume must be rising to show that the buying pressure has resumed.

COT would fit such a category.  Here we have a stock that’s been sold off from around $33 four years ago to below $2 after the final smash in late Feb 08.  Since March this year, we’ve had a large change in volume and OBV has been rising ever since.  A nice medium term resistance has also emerged.  A breakout of this resistance could interest traders looking to take profit around the 5.50 level.