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AMSC, AXSM, CRON, DERM, VCYT — Stock Charts to Watch

Charts of the Day video for Monday March 25th, 2019

AMSC, AXSM, CRON, DERM, VCYT

The market had kind of a mixed session on Monday, down in the morning, up midday, back down, a rally to the end of the day, and a basing attempt after 5-waves down. We’ll see if that is meaningful or not. Many of the stocks we follow had a good day on Monday. Let’s take a look at some of them here.

American Superconductor Corporation (AMSC), a former swing of ours from back in November, did very well. It went from 8 1/4 to all the way up to 17, more than double. It came down, tested the channel bottom, and then had a huge reversal on Monday, jumping 94 cents, or 7.74%, to 13.08, on big volume up from its usual 368,093 average. When you get that kind of engulfing reversal bar on big volume, it usually leads to more upside. Let’s watch the 13 3/4-14 zone, and if it gets through that, we should see 16, and maybe even 19. It could be interesting.

Axsome Therapeutics, Inc. (AXSM), one of our swing trades, is doing great. Ever since it popped in January, it pulled back, we gave you a swing on it at 7-8, it more than doubled, and on Monday, it spiked up 3.34, or 26%, to 16.34, on 4.6 million shares. That’s the biggest volume since the breakout back in January. At this point, if we look at the long-term chart, you can see that there is a new, long-term high on this stock, and it might very well accelerate to 19-20 short-term.

Cronos Group Inc. (CRON), a marijuana stock, bounced off its 50-day and trendline on Monday, gaining 1.30, or 6.76%, to 20.53, on 16.2 million shares. That’s key area. It has to be stopped under 18.70, but if it gets above the 22 zone, it might run to the 25, even 30 zones going forward.

Dermira, Inc. (DERM), another swing trade of ours, popped a week ago and it’s been coiling ever since. On Monday, it popped out of the coil, bouncing 91 cents, or 7%, to 13.90, on 15 million shares. Let’s see if there’s a follow-through. It has to get through 14 3/4-15 1/4. The target, then, is near 17.

Veracyte, Inc. (VCYT) was up 1.30, or 5.31%, to25.76, on 1 million shares. It broke through the top of the channel is a fifth-wave blow-off. The blow-off appears to be underway. It’s now been up for 11 out of 12 days and is looking like it doesn’t want to stop. What I would do is either sell some here, or put a stop underneath the double bottom from Friday and Monday at the 23.85 range. If it runs, let it run. If it doesn’t run and rolls over, you’re out.

Stocks on the long side included American Superconductor Corporation (AMSC), Anavex Life Sciences Corp. (AVXL), Axsome Therapeutics, Inc. (AXSM), Catalyst Pharmaceuticals, Inc. (CPRX), Cronos Group Inc. (CRON), CV Sciences, Inc. (CVSI), Dermira, Inc. (DERM), Eldorado Gold Corporation (EGO), Intelligent Systems Corporation (INS), Direxion Daily Jr Gold Miners Bull 3X ETF (JNUG), Direxion Daily Gold Miners Bull 3X ETF (NUGT), Luna Innovations Incorporated (LUNA), 3Pea International, Inc. (TPNL), Veracyte, Inc. (VCYT), and Voyager Therapeutics, Inc. (VYGR).




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