I've been expecting a bounce recently, after seeing many signs of an oversold market. The past two days have seen the markets finally start to grope for a bottom and begin to attempt a rally. While it is too early to know if this can turn into a more sustainable move, there are some stocks that remain in a healthy position and could really take advantage of any market strength. These stocks have been able to weather the recent storm, and certainly warrant your attention.
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Cogent Communications Group, Inc. (Nasdaq:CCOI) for instance is still trading near the top of its recent base despite the weakness we have seen in the general markets. CCOI has experienced some volatility as it has spiked both above and below the base, most recently reversing from just over $16 per share. It held up near $15 after pulling back, and is now testing the $16 level again. If the markets can show some strength, it's possible that CCOI will be able to emerge from its base. (For more, see Trade On Support For The Best Exit Strategy.)

Western Refining Inc. (NYSE:WNR) is another stock that has been able to hang around despite the recent selling pressure in the markets. While WNR is still below its 50-day moving average, it is still trading in its base, and has respected the $14-$15 level on recent pullbacks. The $18 level has been holding all rally attempts, so WNR still has its work cut out for it. However, WNR does look like it is on its way for a retest of this level and with any market cooperation, could offer a decent trading opportunity.

Illumina, Inc. (Nasdaq:ILMN) has also refused to give up much ground over the past few weeks. In fact, ILMN set a new all-time high in May, and remains very close to this level despite the markets suffering from rampant selling. $70 would be the level to watch below on any weakness, with $75 being the place to start on any strength. A move to either side of these levels would likely offer up a great opportunity. (For more, see Shoot The Moon ... And Hit It!)

While completely unrelated to ILMN, Companhia de Bebidas das Americas (NYSE:ABV) also just set a new all-time high in May. It remains close to these levels and has been working on a cup-with-handle base since the beginning of this year. The $33 level is a key area to watch, as a close above this level would confirm the pattern and also put ABV back to all time highs.

While the current market remains dangerous, there is a fair amount of stocks still in a decent position. I've always been a proponent of sticking with strong charts versus attempts at finding a bottom in beaten up stocks. One reason is they may continue to trade sideways if the markets don't improve, whereas stocks that have been seeing selling will likely continue to sell off. Another reason is that by stocking with clear patterns, there is no question as to when to take a trade. Picking a bottom is much more difficult with no real clear entry and it often takes several attempts before a trader finally gets their entry. Trade carefully, and with the understanding that the chances for further weakness remain quite high. (For related reading, see How To Use Volume To Improve Your Trading.)

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At the time of writing, Joey Fundora did not own shares in any of the companies mentioned in this article.