In case you were like me and found a lump of coal in your stocking I wanted to offer up a couple of investment “presents” that are very attractively setup and ready to pop higher as long as the markets want to continue their push northward. The first is Consolidated Communications Holdings, CNSL. For the first ¾ of the year it has had a very, very nice 2014 as it rose more than 60%. But since October it has taken a breather and been consolidating sideways. This consolidation has done exactly what investors would like to see as it has allowed its momentum oscillators to unwind their overbought conditions while at the same time stay bullishly configured. The MACD has moved above zero and its signal line has crossed above. A break and hold above 28 would be the confirmation investors would like to see that it has likely resumed its trek higher.
The second opportunity is Blue Nile an internet diamond/jewelry provider. Unlike CNSL above, 2014 has not been good to NILE shareholders as it lost almost half its value as the company struggled finding its niche with the very fickle online shopper. It appears as if investors believe the turn around it working as they have bid up share price almost 50% from its bottom. This reversal has formed a very nice, symmetrical inverse head and shoulders pattern that, if plays out, says its only halfway complete and can add another 30+% more to its share price. A break and hold above the 37 neckline would be what bullish investors would be looking for as an attractive entry point.