The four-month rounded base pattern in RadioShack (RSH) continues to mature as the price structure pushes up against its key multi-month resistance plateau at 16.30/40. If hurdled and sustained, this should trigger short covering and new buying that projects prices to the vicinity of 18.00 thereafter.

With falling oil prices and today's better than expected jobs data, which is encouraging for future consumption (especially in entertainment and electronics-related goods), RSH along with Best Buy (BBY) appear to be well positioned to climb.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.