Just a quick post tonight highlighting two excellent looking charts. The first one is MSCC – Microsemi which is trading very close to its all time high. The other one is KYTH – Kythera Biopharmaceuticals which printed a new all time high today.
What I like about both set-ups is that they offer a lot of pattern pressure and are not overextended. That means that they both offer a lot of ‘Blue Sky Upside Potential’ if the upside momentum keeps going.
Click on MSCC daily chart to enlarge:
Click on KYTH weekly chart to enlarge:
Conclusion: Both stocks offer tremendous story stock potential. The beauty of stocks trading at or near all time highs is that you can ignore the story if you so choose and simply trade them using technical analysis.
Update 06/17/15 – Takeover announcement:
Here are the two most recent MSCC news releases. I highlighted the important keywords / sentences:
‘Microsemi Delivers Best-in-class Audio Features for Ambarella-based IP Camera and Wearable Applications‘
The new devices are the most suitable alternate to ASICs providing a low power, cost-effective, secure and reliable solution for automotive applications including advanced driver assistance systems (ADAS), vehicle-to-vehicle/vehicle-to-everything (V2V/V2X) communication and electric/hybrid engine control units. In addition to AEC-Q100 certification, Microsemi offers its customers SEU immunity, award-winning security features and a secure supply chain.
KYTH company description from Yahoo finance:
KYTHERA Biopharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of prescription products for the aesthetic medicine market in the United States and internationally. Its product candidate ATX-101, is an injectable drug in late-stage clinical development for the the reduction of submental fat. The company also maintains research interest in hair and fat biology, pigmentation modulation, and facial contouring. It has a collaboration arrangement with Bayer Consumer Care AG and a related collaboration agreement with Bayer Consumer Care AGs affiliate, Intendis GmbH to develop and commercialize ATX-101 outside the United States and Canada. The company was formerly known as AESTHERx, Inc. and changed its name to KYTHERA Biopharmaceuticals, Inc. in July, 2006. KYTHERA Biopharmaceuticals, Inc. was founded in 2004 and is headquartered in Westlake Village, California.
Successful traders always follow the line of least resistance. Follow the trend. The trend is your friend. – Jesse Livermore