Are These Breakout Efforts For Real? A Closer Look at DHT, EMKR, & KERX

Don't look now, but EMCORE Corporation (NASDAQ:EMKR), Keryx Biopharmaceuticals (NASDAQ:KERX), and DHT Holdings Inc. (NYSE:DHT) have all overcome some serious adversity and jump-started some trade-worthy moves. How so? Read on.

It's been fighting a very good fight since the middle of December, but it wasn't until Friday that DHT Holdings Inc. finally turned the tide in favor of itself. The 32% gain DHT has made since December 14th has forced this shipping stock above its 50-day moving average line (purple) for the first time in months; it used the 20-day average line (blue) as the pushoff-point.

To fully appreciate what's unfolding with DHT, however, you have to see this longer-term weekly chart. It's here we can see the scope of the 2011 pullback (huge), the bowl-shaped reversal that's formed since mid-December (U-shaped reversals tend to have more follow-through than V-shaped), and the volume for last week's progress was huge. This appears to be more than a turning point for DHT Holdings.

EMCORE Corporation is telling the same basic story, though it's a little further along than DHT Holdings Inc. is. It's crossed above its 100-day average line (gray) as of the first of January. In fact, the 20-day average has crossed above the 100-day line as of last week, confirming that the tide truly has turned for EMKR.  

As was the case with DHT though, a look at the weekly chart of EMKR really puts things in perspective. With a similar U-shaped fashion, this semiconductor stock has fought its way out of a trading range, pushing off the floor at $0.82 to do so. The only shortcoming of this breakout effort from EMCORE Corporation is the lack of volume. For that reason, it may be best to let this chart consolidate/regroup above the former ceiling at $1.12 first before diving in. Still, it's a juicy setup.

Finally, a follow-up on comments made by Matthew Briar a couple of weeks ago about Keryx Biopharmaceuticals, with the intent of (1) congratulating Matt, and (2) reiterating his call now that the stock has solidified that breakout effort. At the time, KERX was a bullish/long candidate because it had crossed above the 50-day moving average line (purple) for the first time in a very long time. Since then, this small cap biotech stock has made its way above the 100-day moving average line, and has set up something of a base above it.

Like EMCORE, the only missing ingredient with the rally effort from KERX is volume; we'd really like  to see it grow on the way up so we know the new-buyer floor is strong enough to sustain the upward momentum. This is a major reversal effort for Keryx Biopharmaceuticals, most evidenced by - you got it - a look at this weekly chart. The falling resistance line that had been guiding it lower since May was finally snapped three weeks ago.