These are the Charts of the Day. Despite all the ugliest in the morning on Wednesday morning, the market snapped back and consolidated, and many of our stocks came back and closed very well on the session. It may not have been anything but a snap-back day, and a lot of stocks we play certainly snapped back, but are they going to carry forward, and is the market. That’s the big question, and we’ll find out in the next day or so. Let’s take a look at some of the stocks that looked and did great.
E-Commerce China Dangdang Inc. (DANG) pulled back on Wednesday in a nice, orderly flag to support. It was put on another swing trade. Look for it to get up into the 22-22 1/2 zone. It’s a nice pop if it gets it.
The ETF Direxion Daily Gold Miners Bull 3X Shrs (NUGT) has been flagging at the 52.69 level for a couple weeks, and on Wednesday, it popped 4.33, or 9%, on 5.5 million shares. The targets on this one are at 60, and then 70.
Plug Power Inc. (PLUG) closed well off of the 11.72 range. It came down to 5.95, and on Wednesday morning it came down to 5.32, jumped to 7.40, and then settled back at 6.80, up 77 cents, or 13%, on 141 million shares. We’ll have to see if there’s a follow-through on this stock.
Zynga, Inc. (ZNGA) was up 14 cents, or 2.5%, on 35.8 million shares on Wednesday. In the last five or six days it’s been in a flag pattern, and on Wednesday it had the highest close in the entire move, closing at 5.79. At this point, if it gets up through 5.85-.90 zone, it could see 6 1/2-3/4.
Other stocks on Harry’s Charts of the Day are AudioCodes Ltd. (AUDC), Ballard Power Systems Inc. (BLDP), Chimerix, Inc. (CMRX), Cell Therapeutics, Inc. (CTIC), Market Vectors Gold Miners ETF (GDX), and Glu Mobile, Inc. (GLUU).
Days to cover is the amount of short interest divided by the company’s average daily share volume. In other words, the number of days required to close out all the short positions. A higher number means more potential fuel to a stock’s rally as shorts cover, and thus accelerate the move, when the stock’s price rises.
On Balance Volume (OBV), developed by Joe Granville, is a running summation of volume on up-days minus volume on down days. OBV rises when volume on up days outpaces volume on down days -- and falls when volume on down days is stronger. A rising OBV reflects positive volume pressure that can lead to higher prices. Conversely, falling OBV reflects negative volume pressure that can foreshadow lower prices.