AAC: Not normally a big volume trader but today the stock spiked up breaking both lateral resistance and a declining tops line. It had been developing a base since last November which it broke out from. It traded as high as $13.06 today closing at $12.57. I would look to go long over $13.10 with $15.50 and $16.50 as targets. Short ratio, 25.2 days to cover, so it looks like shorts are getting squeezed.
BZUN: Very strong chart for this stock trading from $26.00 to $35.00 over the last few weeks. It traded as high as 35.67 today closing at $34.90. But it is right up against lateral resistance. It needs to get through $36.00 with price targets of $42.00.
CDXC: Last week, the stock made a move up from the $3.50 level to $4.25 which was lateral resistance. Today it broke through that level and traded up to the next resistance at $4.50. It traded as high as $4.64 and closed right at (now support) $4.50. If it can get through today's high then $5.00 and $6.00 are the targets. Short ratio 11.45 days to cover.
INOV: Stock gapped up off its base of $14.00ish and broke through lateral resistance at $14.75. Today it traded as high as $17.80 closing at $17.10. It is at the top of an up trending channel so it may consolidate. But, if the momentum continues I would look to go long over $18.00 with $20.00 as the first price target. Short ratio 16 days to cover so shorts are getting squeezed.
VERI: Stock just keeps motoring higher trading up to $28.93 today and closing at $28.72. I keep saying it may be over extended and it just keeps roaring higher. You could look to go long with targets into the mid $30's. Just make sure you have stops in place if it fails.
XOMA: Low volume trader but stock is so strong. After breaking out of its base at $8.00 late August it popped up, wedged spiked up and now is forming an ascending wedge. It traded as high as $19.35 closing at $19.05. It is right at resistance and a move over $19.35 and I think this stock is taking off again. Price target $23.00 and $24.00. Short ratio, 17.8 days to cover, shorts could add a lot of momentum to this trade if it breaks out.
I trade the trends and right now we are in a secular bull market and so my bias is long. When the bear comes in a few years I will trade mostly shorts. It makes no difference to me long or short. The patterns are the same only in reverse.
Hey Bob usually in any long position what do you recommend where the stop loss should be placed ?
There are a lot variables, but generally I am $.10 to $.20 below entry price.
http://bit.ly/2oZVJz7
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