Datalink Corporation (DTLK), one of the largest data center solutions provider in the US, broke out from a 14-month cup and handle formation last August as for my technical analysis. Gauging the size of the mentioned chart pattern and added to the break out point, a target price of around $13.74 could be aimed for.
After the cup and handle breakout, the stocks consolidated into a pennant formation for a couple of months just right above the neckline. The way I see it, the pennant could be a setup for the stocks' continued rise towards the $13.74 target. This stock pick could actually be ripe for a move soon since the pennant's resistance has been breached earlier today. Also, the MACD has been sailing above the 0 line and the 50, 100 and 200-day moving averages are on firing order. However, there could be some significant selling pressure experienced on the way up which includes the $12.42 resistance. On the downside, the immediate support could be the cup and handle's neckline then after that could be the 100-day moving average.