The good news is, the aversion of the fiscal cliff means most every stock is up big today. The bad news is, not all of those stocks will be up tomorrow. Enter Gevo, Inc. (NASDAQ:GEVO), Five Star Quality Care, Inc. (NYSE:FVE), and Bridgeline Digital Inc. (NASDAQ:BLIN). Though there's no denying these three names are being boosted by today's marketwide bullish tide, these three stocks are unique in that they still have plenty of room to run, and are still at the early stages of a rebound rally.
For Five Star Quality Care, Inc. it wasn't clear if the 100-day moving average line (gray) would hold up as support or not following the October/November dip. That line held FVE up and prompted a rebound in early November, but allowed the stock to slide under it briefly in early December. Since then, though, not only has the 100-day average line acted as a floor, the 20-day line has stepped in as well. It all bodes bullishly, but....
Though the tide has fully turned for the better, FVE has one more hurdle to clear before it gets the proverbial green light - it has to clear the $5.16 mark, which is the peak from last week, near the peak from early December, and so far, today's high. The bulls are going strong though, and as you can see if you look back on the past the past seven weeks or so, Five Star Quality Care has made those bullish thrusts on higher volume. The bulls want to get busy here; all they need is a catalyst.
Bridgeline Digital Inc. is on a similar situation. Though December's pullback certainly hurt, it didn't drag BLIN beneath the key 200-day moving average line. In fact, it's pretty clear the 200-day moving average line (green) intended to be support even before it was tested. The problem is, the 100-day moving average line also began to act as resistance following the meltdown, holding down any rally effort made since then.
So why bring it up now, since BLIN is still being held down by that 100-day average line (not to mention now held down by the 20-day average)? Because the bulls are knocking on this door too... repeatedly. In fact, Bridgeline Digital shares are currently poised to close above the 100-day line, and with one mire good nudge today, possibly close above the 20-day moving average line (red) as well. It's compelling because it's so much rebound potential after a two-week gestation period.
Last but not least, though this morning's bullish gap is concerning, Gevo, Inc. is up firmly, and has hurdled the 50-day moving average line (blue) in the process. Considering the 50-day line was a cap for GEVO a week and a half ago, this move above that line now is a huge deal. The fact that we've seen four strong accumulation days (counting today) since hitting new lows in mid-December underscores the strength of the rebound effort. And, as you can see from the chart below, there's plenty of room to rebound.
GEVO is a biofeuls maker, offering alternatives to petroleum-based fuel. It along with the rest of its peers are firm today in the shadow of skyrocketing oil; alternative fuels find more demand when oil is prohibitively expensive. The fact that Gevo, Inc. also unveiled a major stock-repurchase program today isn't hurting either. Thing is, that stock buy is apt to get traction for a long time, suggesting this young rally has a good future.