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It looked like a turn-around Tuesday as the markets spiked to the upside, and then they came down all afternoon, but still finished positive, taking back a huge chunk of their gains. Let’s take a look at chart patterns and see how some of these stocks are doing.
Ebix Inc. (EBIX) broke out of a wedge on Tuesday to new, all-time highs, up 2.43 to 58.21, or 4.4%, on 209,559 shares traded. It has 29 days to cover. You may see a squeeze to mid-channel to the mid-60 range on this one.
Exelixis, Inc. (EXEL) ran back up to retest the highs on Tuesday, making a nominal new high by a couple cents, up 17 cents to 11.51, or 1.5%, on 5 million shares traded. The next targets are nearly 13, 15 and 17. It has 8.2 days to cover in a sharply rising channel.
Five9, Inc. (FIVN), also in a sharply rising channel long-term on the daily chart, also broke through an ascending wedge. It broke out two days ago, and followed through Monday and Tuesday, up 62 cents to 14.82, or 4.4%, on 909,468 shares traded. The targets are 15 1/2-3/4, and then 18. It has 2.82 days to cover.
Mobileye N.V. (MBLY) had positive news on Tuesday regarding a venture with Delphi Automotive (DLPH), exploding 3.10 to 49.66, or 6.66%, on 10.5 million shares traded, reaching a new high at 51.15, a dollar higher than a month ag, but it backed off to close near there. Nevertheless, I think the breakaway gap out of the large wedge is significant enough that it’s going to take it higher. Targets are 54, 58, and then 63-4. It has 5.7 days to cover.
Stocks on the long side included Ambarella Inc. (AMBA), Arrowhead Pharmaceuticals, Inc. (ARWR), AXT Inc. (AXTI), Clovis Oncology Inc (CLVS), Tableau Software, Inc. (DATA), Eleven Biotherapeutics, Inc. (EBIO), Ebix Inc. (EBIX), Exelixis, Inc. (EXEL), Five9, Inc. (FIVN), Hudson Technologies Inc. (HDSN), lci, Mobileye N.V. (MBLY), Momo Inc. (MOMO), Nordson Industries (NDSN), Nektar Therapeutics (NKTR), Puma Biotechnology, Inc. (PBYI), Raven Industries Inc. (RAVN), Vuzix Corporation (VUZI), Energous Corporation (WATT), Weibo Corporation (WB), XPO Logistics, Inc. (XPO).
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.