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CRC, CRNT, EOLS, EXTR, OSTK, ZIXI — Stock Charts to Watch

Charts of the Day video for Wednesday January 30th, 2019

CRC, CRNT, EOLS, EXTR, OSTK, ZIXI

Wednesday was a big day and a significant day. There were technical breakouts across the board, across key resistance, and after reviewing the Elliot Wave review, we may have had wave five and are headed dramatically higher on a short-term basis, but it may be blow off. So, you have to be careful up here.

California Resources Corporation (CRC) is one of my favorites in the oil sector, and I like the looks of this one. On Wednesday, it was up 1.00, or 5%, to 20.60, on 2 million shares. It peaked at 49.98 in October, it dropped all the way down to 17.04 on the last day of 2018, reversed, ran up to just below the moving average. I believe this is going to be a swing trade that takes the move and duplicates it higher to 26, and eventually to 30 and 35.

Ceragon Networks Ltd. (CRNT) is looking well. The swing that we put on it two days ago extended on Wednesday taking it up 28 cents, or 7%, to 4.40, on 756,715 shares traded. I fully believe this stock is on the verge of a move to the 6-7 zone.

Evolus, Inc. (EOLS) popped 53 cents, or 3.5%, to 15.62, on 611,538 shares traded. When I looked at this chart on Wednesday, I thought, this is five waves down and the fifth was is truncated. The bottom of the channel is a double-bottom, it broke out, retested resistance, pulled back sharply, but held. Now I’m thinking, with the volume increasing for the last four days on the upside, even though it’s slow and tedious, it could be a bear flag. I put a swing trade on it on Wednesday, because I think it’s going to break out to 17-17 1/2, and then run to 20 and 25.

Extreme Networks, Inc. (EXTR) gained 47 cents, or 7%, to 7.40, on 4.2 million shares. I just had to put a swing out on it on Wednesday. Check this out. This stock dropped from 16 to 43/4, formed a base of the last six months, and broke out on Wednesday. The volume was the biggest in three months, and it closed at the upper-end of the range. A gap-fill gets it to about 8 1/4, and then 9 1/4. Beyond that, a gap-fill could get it to 11.

Overstock.com, Inc. (OSTK) popped 32 cents, or 2%, to 18.03, on 2.65 million shares. After the big pop and pullback, I was a little skeptical, but it held for three days. On Wednesday, it had that little pop, but not much. I’m watching 20 as the next target, and then 23-24 and 28-29 going forward. I’ve got a feeling you’re going to see that.

Zix Corporation (ZIXI), a swing trade of ours, is looking good. Look at that extension. This stock has been up ten days in a row and increasing volume in the last two session. It did a little bit of a reversal on Wednesday, got up to 7.67, pulled back a slightly, and closed up 17 cents, or 2.37%, to 7.33, on 900,231 shares traded. It may need to get a pullback to test the zone near the recent breakout at 6.95-7.00. If it pulls back and consolidates in this zone, the next target is 8 1/4-1/2.

Stocks on the long side included Apple Inc. (AAPL), Advanced Micro Devices, Inc. (AMD), Aphria Inc. (APHA), California Resources Corporation (CRC), Direxion Daily S&P Biotech Bull 3X ETF (LABU), Ceragon Networks Ltd. (CRNT), CV Sciences, Inc. (CVSI), eHealth, Inc. (EHTH), Evolus, Inc. (EOLS), Epizyme, Inc. (EPZM), Extreme Networks, Inc. (EXTR), Direxion Dly S&P Oil&Gs Ex&Prd Bl 3X ETF (GUSH), The Meet Group, Inc. (MEET), Mercury Systems, Inc. (MRCY), NIO Inc. (NIO), Overstock.com, Inc. (OSTK), Pyxus International, Inc. (PYX), SecureWorks Corp. (SCWX), Sarepta Therapeutics, Inc. (SRPT), Titan Medical Inc. (TMDI), Xilinx, Inc. (XLNX), and Zix Corporation (ZIXI).




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