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CAR, ESNT, GPS, M, NK, PENN — Stock Charts to Watch

Charts of the Day video for Wednesday May 27th, 2020


Avis Budget Group, Inc. (CAR) broke out on Wednesday, and jumped 3.36, or 18%, to 21.97, after reaching a session high of 22.10, and then another 18 cents to 22.15 in after-hours. It came out of a base pattern with a thrust on 13.3 million shares traded. That was a good move and I think this stock is headed to 27 at this point.

Essent Group Ltd. (ESNT) broke out of a base on Tuesday, and then followed through on Wednesday with a breakaway gap, taking it up 4.64, or 14%, to 37.42, with a session high of 37.81, on nearly 6 million shares traded. I wouldn’t be shocked to see a quick move to 38 1/2-39, and then 42 1/2.

The Gap, Inc. (GPS) is running out of a base pattern, with a head and shoulders, then a double right shoulder, and a breakaway gap above a triple-top, gaining 1.64, or 18.4%, to 10.57, and closing just 3 cents off the session high at 10.60, on 21 million shares traded, and then another 18 cents to 10.76 in after-hours. It’s probably going to test 11.35 near-term, and then the secondary target would be upwards of 12 3/4.

Macy's, Inc. (M), another retail group, probably moved on short covering. It broke out of a coil on Tuesday, gapped, and formed a breakaway run on Wednesday, with a move up of 1.21, or 19.6%, to 7.38, reaching a session high of 7.48, on 96 million shares traded, and then another 49 cents to 7.86 in after-hours. That is big volume for this stock, just short of 99 million shares traded a couple months ago. Nevertheless, this gap may be in play and I’m looking for a run-up to test 8.35.

NantKwest, Inc. (NK), in the healthcare sector, exploded late in the day, after an explosion midday, it coiled, and broke out again, with a move up of 2.13, or 39%, to 7.58, having reached a session high of 8.34, on 22.2 million shares traded. This is a stock to watch because, I think, it will get a follow-through. Th spike-up from Jan 16 that took us to 9.90 could very well get tested.

Penn National Gaming, Inc. (PENN), a swing trade of ours, formed a V-bottom mid-May, formed a platform swing trade, and has gone from 10 to 33. On Wednesday, it popped 3.10, or 10 1/2%, to 32.39, with a session high of 32.65, on 25.4 million shares traded. It has had a beautiful run. Any extension here could retest the highs at 39.

Stocks on the long side included Alcoa Corporation (AA), Allegheny Technologies Incorporated (ATI), Avis Budget Group, Inc. (CAR), Carnival Corporation (CCL), Coherus BioSciences, Inc. (CHRS), DraftKings Inc. (DKNG), Essent Group Ltd. (ESNT), Evofem Biosciences, Inc. (EVFM), The Gap, Inc. (GPS), U.S. Global Jets ETF (JETS), Lumber Liquidators Holdings, Inc. (LL), Macy's, Inc. (M), Remark Holdings, Inc. (MARK), Mersana Therapeutics, Inc. (MRSN), Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL), Nabors Industries Ltd. (NBR), Norwegian Cruise Line Holdings Ltd. (NCLH), NantKwest, Inc. (NK), Penn National Gaming, Inc. (PENN), Royal Caribbean Cruises Ltd. (RCL), Teva Pharmaceutical Industries Limited (TEVA), Triumph Group, Inc. (TGI), U.S. Concrete, Inc. (USCR).




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