TRADE ALERT: Technical Trade Setups for Friday 6/24/11

Going with Thursday's session theme of reversals, the stocks listed in this article have been beaten down as of late, but are beginning to show signs of strength. The biggest fear shorts have is the potential of a squeeze, and any sign of a potential reversal will send them running to cover – sending share prices skyrocketing in the process. The following stocks have serious potential for a large percentage move to the upside in the near future: 1) Conceptus CPTS: Shares of Conceptus have lost 28% since reporting earnings on May 10th. The stock has been down ten out of the past thirteen trading days and hit a 52-week low of $10.31 in Thursday's action. Buyers began to step in around 12:30pm yesterday, sending shares jumping 5% up from the low, to the closing price of $10.87. A buy signal would be confirmed if the stock breaks over Thursday's intraday high of $11.13 – the exit point would be a move below $10.31. As the six month daily chart below shows, a test of $12.50 resistance would be the first course of action, followed by a test of the 50-day simple moving average, which is currently at $13.26 – 22% higher than the current price. 2) Phoenix New Media FENG: Shares of Phoenix New Media just opened for trading on May 12, 2011. In that time, the stock has gone from its opening day closing price of $14.75 to its current price of $8.92 – a 40% drop. Shares hit a 52-week low of $8.01 in Thursday's session. Heavy buying volume began to push shares up at 1:50pm, launching shares 11% up from the low to the closing price of $8.92. A buy signal would be confirmed if the stock breaks over Thursday's intraday high of $9.27. As the three month daily chart below shows, if the stock can break over $9.50, a quick move to $11 may be in the near future - 23% higher than the current price. 3) Gladstone Capital GLAD: Shares of Gladstone have lost 15% since reporting earnings on May 2nd. In that time, the stock has tried to break below $9.18 on three occasions, and has failed on all of them, as buyers quickly rushed in (May 23rd, June 13th, and June 23rd). Yesterday's third attempt, and ultimate bullish reversal, may be the catalyst that finally sends shorts covering, and the stock price soaring. As the six month daily chart below shows, a test of $9.65 resistance will come first. If shares can break above that level, a test of the 50-day simple moving average, which is currently at $10.40, would be next. 4) Vanceinfo Technologies VIT: Shares of Vanceinfo Technologies have lost 38% since the beginning of May, and have had 20 negative trading days out of the past 28. The stock hit a 52-week low of $19.55 in yesterday's session, but managed to climb 2% higher from that price to close at $20.00. The $19.50 level has held as strong support three times since May 25th. Today's failure to break below that price yet again may be the catalyst that starts the reversal. A buy signal would be confirmed if the stock breaks above yesterday's intraday high of $20.30. As the six month daily chart below shows, the next level of resistance would come into play at $22.50. Beyond that, there is no resistance until $26.10 – 31% higher than the current price. Disclaimer Neither Benzinga nor its staff recommends that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.