We’re going to jump right in and take a look at the charts. All I can say is the Ides of March are on the market, and the biotech sector. It’s uncannily familiar to me and similar to the 2000 peak when the dot-com’s went ballistic.
McDermott International Inc. (MDR) is a very neat little electrical service company, up just 7 cents on Wednesday to 3.81, or 1.87%, on 7 million shares. It’s in a big downtrend, going from 8.00 down to 2.00. It has an inverse head-and-shoulders pattern, and has been up four days in a row, volume and OBV have been increasing every day. A good target for this stock is 4 1/4, and if it gets through that, then 4.30-5, maybe.
Rally Software Development Corp. (RALY) has been phenomenal. In a pullback market it has gone straight up. On Wednesday it was up 95 cents to 15.37, or 6.6%, on nearly a million shares. It had a breakaway gap and four consecutive days rising. Let’s see if it will reach my initial target of 14, and then the next target could be as high as 18. Keep an eye on the 18-18 1/4 level going forward.
F5 Networks, Inc. (FFIV) broke the trend in December, formed a rising wedge, broke out of it, snapped back to resistance, and on Wednesday, it was down 2.12 to 112.90, or 1.84%, on 1.7 million shares. It looks like it could start to fall apart. With a massive head-and-shoulders potential, any break of this neckline could lead it down to the low 90’s.
Varonis Systems, Inc. (VRNS), which I’ve been talking about for a week or two, finally broke its flag on Wednesday, down 2.22 to 27.39, or 7.5%, on 131,120 shares traded. Looks like it may be headed to 25, and may even get down to the 20 range at some point.
Other stocks on Harry’s Charts of the Day included ProShares UltraShort Nasdaq Biotech (BIS), California Resources Corporation (CRC), Green Plains Renewable Energy, Inc. (GPRE), Solar3D, Inc. (SLTD), Stamps.com Inc. (STMP), Vascular Biogenics Ltd. (VBLT), and Universal Electronics Inc. (UEIC).