![\"Buying](\"http:\/\/www.profitconfidential.com\/wp-content\/uploads\/2013\/06\/120613_PC_leong.jpg\" "\\"Buying")
<\/a>When I evaluate potential stocks to trade, not only do I examine how well the company has done and delivered, but I also look at the stock\u2019s chart potential and technical analysis<\/a>.<\/p>\nIn fact, I often will screen stocks based on my technical analysis system, and from there, I\u2019ll take a closer look at the company\u2019s underlying fundamentals. But the strategy I use for day trading and swing trading differ from the process I employ for longer-term buys.<\/p>\n
For trading, I tend to rely on technical analysis more than I do for longer-term investments.<\/p>\n
Stocks that I really like to look at are those trading at their 52-week highs. (Read \u201cDenny\u2019s Serves Up Grand-Slam Returns<\/a>.\u201d) Some of you might ask why I would bother to look at stocks that have already eclipsed their 52-week highs. The reason is that these stocks are trading at their highs, because they are delivering results to Wall Street. As a side note, I also look at stocks near their lows, but these are predominately viewed as contrarian picks.<\/p>\n An excellent example of a stock at a 52-week high that I suggested readers keep on their watch lists recently was Mannkind Corporation (NASDAQ\/MNKD), a biopharmaceutical company that is making some great strides in developing therapeutic products for several diseases, including diabetes, cancer, and inflammatory and autoimmune diseases.<\/p>\n On the chart, Mannkind has made 26 new highs this year and has shot up 213% in that time, according to data from Barchart.com. Over the past year, the stock made 32 new highs and is up a sizzling 341%, based on my technical analysis.<\/p>\n Examining Mannkind\u2019s stock chart through technical analysis, the company is excellent, showing successive highs this year, as indicated by the purple circle in the chart below.<\/p>\n The stock is pausing now, down eight percent from its high, so it may be taking a break. I would not be chasing the stock as the easy money has been made for now, based on my technical analysis.<\/p>\n Chart courtesy of www.StockCharts.com<\/i><\/p>\n In addition to Mannkind, there is always a good buying opportunity to make money when examining stocks trading at their 52-week highs through technical analysis.<\/p>\n I look for high volume stocks trading above their 50- and 200-day moving averages (MAs). You want to look for a possible \u201cgolden cross\u201d pattern, in which the 50-day MA is above the 200-day MA, as shown in the chart of Mannkind below. You also want to see strong or rising relative strength and a bullish moving average convergence\/divergence (MACD).<\/p>\n Chart courtesy of www.StockCharts.com<\/i><\/p>\n Another stock on the rise is Novatel Wireless, Inc. (NASDAQ\/NVTL), which jumped 7.71% on June 7 and is edging higher on the chart.<\/p>\n Chart courtesy of www.StockCharts.com<\/i><\/p>\n Other potential candidates include MicroVision, Inc (NASDAQ\/MVIS), Pacific Sunwear of California, Inc. (NASDAQ\/PSUN), Flamel Technologies S.A. (NASDAQ\/FLML), and TearLab Corporation (NASDAQ\/TEAR).<\/p>\n![\"MannKind](\"http:\/\/www.profitconfidential.com\/wp-content\/uploads\/2013\/06\/MannKind-Corporation-Chart.jpg\" "\\"MannKind")
<\/a><\/p>\n![\"MannKind](\"http:\/\/www.profitconfidential.com\/wp-content\/uploads\/2013\/06\/MannKind-Corp-Chart.jpg\" "\\"MannKind")
<\/a><\/p>\n![\"Novatel](\"http:\/\/www.profitconfidential.com\/wp-content\/uploads\/2013\/06\/Novatel-Wireless-Inc-Chart.jpg\" "\\"Novatel")
<\/a><\/p>\n