ELLI, SPRT, CEC, CNW - Stock Charts to Watch
Charts of the Day video for Wed October 3rd 2012
The stock market made its way into the plus column on Wednesday. Even so, we’re going to look at both longs and shorts here.
Ellie Mae, Inc. (ELLI) is one of our favorite charts of the year and has been a monster of a stock. It began its uptrend in February of this year around the 6-7.00 range, and has moved steadily higher, and more than quadrupling. After a big consolidation of several weeks, on Wednesday, it popped 2.15 to 28.92, or 8%, on 1.2 million shares. That’s the biggest volume in a couple weeks. If it gets through the spike highs at 30.40, this stock could head to the mid 30’s.
Sarepta Therapeutics, Inc. (SRPT), one of our swing trades, was the star of the day on Wednesday, jumping 200% on positive news of a new drug that may be a cure for muscular dystrophy. It was up 29.94 to 44.93, on 27.9 million shares. Just a couple days ago when it broke out of a flag, it pulled back for a day or so, and then exploded on Wednesday. When we see these kinds of patterns with a big breakaway, we often see a stair-step up. It may pull back, to the 38-40 range, consolidate and move higher to the mid 50’s, and then high 60’s, eventually.
On the Short Side…
CEC Entertainment Inc. (CEC), one of our favorite charts all year, slam-dunked, wedged, formed another wedge, and had a 4-wave move. Look for a 5th wave down into the mid 20’s.
Con-way Inc. (CNW), a recent swing trade on the short side, broke down in mid-June, formed a wedge, came down for a few days, formed a little bear wedge, and suddenly looks like it wants to go lower. Look for something down around 24 1/2, the next target. The secondary target is around 21-22.
Other stocks in our Charts of the Day are Alere Inc. (ALR), BIOLASE, Inc. (BIOL), BioLineRx, Ltd. (BLRX), CalAmp Corp. (CAMP), Capital Senior Living Corp. (CSU), Local Corporation (LOCM), inContact, Inc. (SAAS), Vringo, Inc. (VRNG), and Zogenix, Inc. (ZGNX).
Charts of the Day on the short side include CEVA Inc. (CEVA), Forward Air Corp. (FWRD), Monster Beverage Corporation (MNST), True Religion Apparel Inc. (TRLG), and Walter Energy, Inc. (WLT).