Huge follow through to yesterdays market gap up for the indices. Both the NDX and SPX adding on close to two percent in two days. The biotechs (LABU) broke out of the down trending channel yesterday and today gapped up and closed at (now) support at $49.84. It does have room to move with a double top resistance coming in at $55.00.
ATI: After building a base for 1 years, the stock gapped out of its trading range and traded as high as $24.00 before making an orderly retracement back to support at $17.00. Yesterday it broke out of the down trending channel when it intersected with the longer term up trending channel. Today, it had a strong move to the up side breaking through lateral resistance and trading up to $20.11 before closing at $19.89. If we get follow through on this stock it should trade up to the previous high of $24.00. Above that level and my price target is $27.00 Shorts 11.9 days to cover.
EPZM: After bottoming at $7.00 last September, the stock has been in an up trending channel trading recently as high as $18.00 in March. It then sold off sharply to support at $14.00 and consolidated for a few weeks. Today, gapped out of that range trading up to resistance at $17.95 before closing at $17.45. I would look to go long this stock over $18.00 with $21.00 as the price target. Shorts, 9.4 days to cover.
LXU: The stock gapped up from support at $7.00 and traded as high as $9.92 before settling in at $9.61. It is lots of traffic in this area but if the momentum continues then $12.00 is the price target. Shorts 12.4 days to cover.
MIME: Looks to have broken through lateral resistance. It is at the bottom edge of its up trending channel and looks to go much higher. Over $24.00 and price targets are $25.00, $27.00 and $31.00.
RXDX: After a long 5 wave declining pattern the stock based in the low $4.00 range. In February it moved out of that range trading through resistance at $7.25 and trading up to nearly $10.00. In March it made an orderly retracement in a down trending channel. But, today it broke out of that channel to the upside trading as high as $9.20, closing at $8.95. If this stock can trade through $10.00 then we should see $12.00.
TGTX: After consolidating over the last two weeks in the $10.00 range, the stock broke out sharply to the upside trading up to resistance at $12.15, closing at $12.00. I would look to go long over $12.25 with $15.00 and $19.00 as my price targets.
Days to cover is a ratio found by dividing the short interest by the 100 day average volume. The resultiong number is how many days it would take for all the shorts to cover if they were the only buyers and they all covered. A number less than 5 does not have much bearing. Between 5 and 10 with a catalyst and it should add momentum to the trasde. Over 10 and a good catalyst, let the fire works begin!
Thanks for a new watchlist Bob!
Thanks for the regular watchlist, I was also interested in learning about the 'days to cover' aspect, so thanks for explaining that.
Thanks Bob
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