Market Overview

Five Basing Stocks That Could Move Higher

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Looking for some names poised to move higher?

Benzinga found five stocks that have already had strong years that appear to be taking a break. These basing patterns can sometimes signal that another move to the upside is on the horizon.

See also: Three Rising Asian Stocks With More Room to Grow

Berkshire Hathaway (NYSE: BRK-B)

If you want to invest in Warren Buffett and you can’t afford the six-figure price tag of a single share of the A shares, you buy up shares of the B shares, affordably priced at about $115.

The stock had a strong first half of the year as it ran up about 24 percent. During the second half, it has settled into a basing pattern but recently a wedge has form making this stock ripe for a breakout to new highs. Of course, it could also break down so be careful.

Bank of the Ozarks (NASDAQ: OZRK)

This Arkansas-based bank is up 60 percent this year and after a strong run to the upside, it has taken a breather so far this month. Judging by the chart, this could be a temporary time-out for the stock and healthy action that could suggest further upside ahead.

Papa John’s International (NASDAQ: PZZA)

You either love or hate the company’s pizza but after spending most of the year slowly melting up, the stock went on a tear in October rising 25 percent before forming another base at the $85 level. It has recently broken above that base but has struggled to find follow through. That doesn’t mean the stock is breaking down, however.  This name could be poised to move higher.

Wyndham Worldwide Corporation (NYSE: WYN)

Wyndham is another name that started the year with only modest gains, but rocketed higher in late October resulting in gains of 30 percent this year. Since the end of November, the stock has stalled around the $72 level but has held on to its gains. The stock could be entering a prolonged period of rest or this could be a brief time out before continuing higher. The chart would suggest more gains.

Walt Disney Co (NYSE: DIS)

If you’ve held on to Disney this year, you’re quite happy. The stock is up 40 percent year to date as a result of a melt up that started in the middle of September. The upside moved has found resistance around the $71.50 level but the trajectory is in tact. Look for Disney to continue higher.

See also: Twitter, Deere and Other Stocks to Unload for 2014

As always, don’t take our word for it. Use these names as a starting point for your research. Study the chart, the balance sheets, and the overall market for clues.

Disclosure: At the time of this writing, Tim Parker had no position in the companies mentioned.

Posted-In: Bank of the Ozarks Papa Johns Walt Disney Co. wyndham worldwideTechnicals Trading Ideas Best of Benzinga

 

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