We got a few things right last week. Stock markets continued their momentum after breaking to new highs, DRDGOLD sold off as expected and breakout pick CUDA rallied nicely. If only it was always that easy.

This week I am travelling but I have been able to come up with a few more setups which you will find below.

Looking at the bigger picture, there seems no reason to bet against bullish sentiment. The BOE failed to rock the boat last week, earnings has been OK, and the coup in Turkey seems to have failed. Therefore, we do not anticipate any major change in sentiment or direction (withstanding any new developments of course)

Earnings will again be in focus and volatility will continue in the British pound with new PM Theresa May still settling into the role.

Bullish Setups

Allere Inc. $ALR

ALR is a $3.75 billion healthcare company listed on the NYSE. The stock rallied on strong volume on Friday and we also saw a bullish kicker formation with the opening gap up.

The move came after bullish commentary on Wall Street and we could see the ticker move back towards the proposed buyout price of $56 per share which was proposed by ABT in February.

alr stock

Lydall Inc. $LDL

Lydall put in a strong week last week, opening on a bullish gap up and then finishing near it’s highs on heavy volume. The company rallied after a deal to acquire Texel for $96 million in cash was announced.

The news was clearly greeted by enthusiasm by investors and the stock could run on if it breaks $45.

ldl stock chart


Bearish Setups

SkyPeople Fruit Juice Inc. $SPU

This is a Chinese stock on the Nasdaq with a market cap of only $18 million. Accordingly, this is a risky stock which can move violently. The stock is up 200% over the last few days therefore it would not be a surprise to see a pullback. I don’t know whether shorts will be available and it might pay to wait a couple of days as well.

spu stock chart

Resolute Energy Corp. $REN

Resolute Energy Corp. is up 130% on the month and is another stock that could fall due to profit taking and as we see volume levels decline. I tried shorting it last week but only got a small amount of follow through. The $8 level seems to be a key point of resistance.

ren stock chart

One To Watch

Ardelyx Inc. $ARDX

ARDX is a biotech stock that showed some bullish price action towards the end of the week and looks like it has bottomed out. This stock does not have much coverage and most investors seem bearish. However, the stock has a low short float and may run on this week.

ardx stock chart

All charts on this page taken from FINVIZ*Elite – #No.1 For stock charts and analysis.




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