Wednesday January 29, 2014
Charts of the Day
by Harry Boxer, www.TheTechTrader.com
Wall Street had a very nice rebound on Tuesday, especially the steadiness of it, but did close beneath key overhead resistance. We need to get some follow-through. If the S&P 500 doesnÕt get some follow-through here, itÕs liable to take the whole market down with it. Still, thereÕs a lot of stocks on the long side that are acting well. LetÕs take a look at a few of them.
Arrowhead Research Corp. (ARWR) has been doing great for us ever since it broke out in September in the 4 1/2 range. It has gone up to nearly 14, reaching the high at 13.87 on Jan 13. It pulled back in a nice, orderly week-and-a-half-long flag. In the last few sessions it has been moving up, and on Monday it was up 1.63, reaching 13.80, or 13.5%, on 1.2 million shares. ItÕs looking good for more upside if it gets through resistance at 13.87. Target is set for 18 1/2-19 next.
Echelon Corporation (ELON) had a big day on Tuesday, up 59 cents, or 19%, on 2.1 million shares. ThatÕs one of the largest-volume days of the year, and broke the stock out of a little wedge. The target is 4 1/2, and it may happen as quickly as Wednesday. Beyond that, look for something up around 4 3/4.
GlobalSCAPE, Inc. (GSB) broke out of a nice base in November, formed a coil, popped out of that coil right to resistance, and formed a 3-day flag and low-volume ebb. It turned up on Monday, and then on Tuesday popped 51 cents, or 17%, on 2.5 million shares. ThatÕs the biggest volume this stock has ever traded, or at least in the last few years. Looking at the long-term chart, this is a very important breakout because of the 6-year base. A breakout like this, with this kind of volume, usually leads to higher levels. Look for something up around 5 1/2-6 range short-term, and then the secondary target is 7 1/4-1/2.
Idenix Pharmaceuticals Inc. (IDIX) had a nice snapback on Tuesday, after four days of pullback, testing the trend line and price support. It bounced 1.17, or 17%, on 3.3 million shares. Look for a retest of the high up around 10.30-.50.
Millennial Media Inc. (MM) had an important breakout on Tuesday, up 1.01, or 13.7%, on 7.1 million shares. That breaks it out across the resistance range, and may be setting it up for a test of 9 1/4, followed by 10 1/4, or thereabout.
Silicon Motion Technology Corp. (SIMO), which weÕve been following for a while, had a key day on Tuesday. An important declining topsline was taken out in a big thrust on earnings. The stock gapped up and ran 2.38, or 16%, on 2.4 million shares. ThatÕs the biggest volume in a while for this stock. Now that it broke out and moved up, thereÕs a target of 22 on it. Look for another swing trade on SIMO, especially if it has a pullback.
Other stocks on HarryÕs Charts of the Day are Camtek Ltd. (CAMT), CytRx Corporation (CYTR), Echelon Corporation (ELON), Horizon Pharma, Inc. (HZNP), Keryx Biopharmaceuticals Inc. (KERX), Millennial Media Inc. (MM), Oramed Pharmaceuticals Inc. (ORMP), Real Goods Solar, Inc. (RSOL), and SolarCity Corporation (SCTY).
Please click here for the full Charts of the Day video.
Harry Boxer is an award-winning, widely syndicated technical analyst and author of The Technical Trader (www.thetechtrader.com), which features a real-time diary of Harry's minute-by-minute trades and market insights, plus annotated technical charts & stock picks, based on Harry's nearly 40 years experience as a Wall Street technical analyst.
Sign up for a FREE 15-DAY TRIAL to Harry Boxerís Technical Trading Diary. More than 60 trading entries and market comments per day!