The primary trend for the indices is still up. And remember, the trend is your friend. The NDX made a nominal new high last week. But there is divergence with the transportation index. They have come off and are trading right at the lower up channel line. It could be a function of the rising oil price. The Trannies will need to change direction to confirm the other indices upward moves.
The Russell 2000 (IWM) was rolling over but had two strong days at the end of the week. It is in a base building formation at the moment and could go either way.
Semiconductors (SMH) made a nominal new high and remains in a strong up trend. It is a big run already so we could see some consolidation as it is near resistance.
Financials (FAS) look much the same as SMH, having stalled in here. But it is at the top of the channel so not unexpected.
Biotechs (LABU) are having a hard time. Looking at the major components of the ETF you can see why with all the big names down sharply. It looks like it has broken the neck line on a head and shoulders pattern. This sector is quite weak at the moment but it has bounced off the lower up trending channel line.
Gold (GLD) has been forming a wedge pattern and on Friday broke out to the upside of that pattern. It does have overhead resistance in this area so I will not be looking at the miners just quite yet. Gold needs to show more strength first.
Longs:
ADMS: Last month the stock broke out of a wedge formation and ran to just over $29.00. The last week it has been forming a flag pattern. On Friday it traded as high as $26.83 closing at $28.41. Over $29.25 I would look to go long with $31.00 and then $36.00 as the price targets. Short ratio 3.7 days to cover.
CDXC: Stock may be over extended in here with such a strong run up. But if the momentum continues my price target is $8.00. Short ratio, 9 days to cover.
DRNA: Very strong chart but trading at the top of its channel so may be over extended. I would look for entry opportunities with $9.00 as the risk. If it should continue its run, $12.00 and $16.00 are targets. Short ratio, 3.6 days to cover.
EXTR: Powerful chart in a long up trending channel. It broke out of a flag formation on Thursday and had a pause on Friday. It traded as high as $13.05 closing at $12.81. I would look to go long over $13.20 with $17.00 as the price target.
HIMX: Stock is at major resistance level with a triple top. On Friday it traded up to $12.00 closing at $11.54. Keep an on on this stock for a break over $12.00 with $14.00 and $16.00 as price targets.
XNET: I don't think this chart is finished. Strong up trending channel. Thursday it broke through lateral resistance and Friday it became support. Stock traded as high as $16.65 closing at $15.20. I'll be watching for an entry opportunity or over $16.65. Top of the channel is $20.00.
Shorts:
BITA: Stock broke a head and shoulders neck line at around $42.00. It traded as low as $38.19 on Friday, closing at $39.13. I would look to short on pops to $41.50 or under $39.00. Price target $34.00.
FNSR: Ugly long term chart in a strong down trending channel. It recently broke down through support and has bounced back closing at $19.26 on Friday. I would look to go short on bounces to $19.70 range or under $19.00. Bottom of the channel puts the price target at $15.50.
MMYT: After a drop to $22.50 range the stock has rallied back up to resistance at $27.50. It is forming a bear wedge. I am looking to enter a short around $27.75 with $22.50 as the price target and then $19.50. Short ratio, 8.9 days to cover.
NHTC: After breaking down from a bear wedge last month it has been unable to have any bounce and is forming another bear wedge. I would be looking to short in the $19.00 area or if it breaks down from this bear wedge. Price target $16.00 and then $14.00. Short ratio, 29.2 days to cover.
TRUE: After a huge drop it has been unable to put in any meaningful rally. I will be looking to short on pops to $12.00 or under $11.00 $8.00 price target. Short ratio, 17.3 days to cover.
Can't predict that. Have tow ait and see what th eprice action is when it gets there
yes sir, very impressive run with this ticker so far, seems to be fueled by all the short sellers
bob did you get some of xnet over 16 ? what a move on this thing !
No, I missed it.
Join now or log in to leave a comment