Chart Review of CHIP, AIB, EPIX, and BEE
Allied Irish Banks, VeriChip Corporation, Strategic Hotels & Resorts Inc, and EPIX Pharmaceuticals are given a technical once-over.
Stocks are off to a strong start this week, though it remains to be seen if we'll see any follow-through. A handful of charts look quite strong though, like Allied Irish Banks, plc. (ADR) (NYSE:AIB), VeriChip Corporation (NASDAQ:CHIP), Strategic Hotels & Resorts Inc. (NYSE:BEE), and EPIX Pharmaceuticals, Inc. (OTC:EPIX). Here's a better look at each, and how traders could play them.
The last time we looked at Strategic Hotels & Resorts Inc. (NYSE:BEE) was on September 17th, mentioning that we'd be willing to make an exception with the breakout at the time, and actually buy into it. It's a good thing we did.
At the time, Strategic Hotels & Resorts shares were trading at $2.09. Our only worry was potential resistance around $2.29, but with the current price of $2.76, not only was that ceiling not a problem, but BEE is higher by 32%.
We bring it up again now simply to re-pose it as a buy at an advantageous entry level. Strategic Hotels & Resorts dipped quite a bit after peaking at $3.07 in late September, but the buyers have come back to the table despite the pullback threat. BEE is being accumulated again - pretty heavily. It's likely to be action worth following.
Strategic Hotels & Resorts was trading in the $20's just a couple of years ago, so the recovery potential here is tremendous.
Nine times out of ten we'd look at a chart like the one we're seeing for EPIX Pharmaceuticals, Inc. (OTC:EPIX), and just dismiss it as untrade-able volatility. This time though, there's just something compelling about EPIX when we view the bigger picture.
Just to be clear, EPIX Pharmaceuticals aren't out if the woods yet. These surges out of nowhere are frequently a recipe for disaster, and EPIX could easily fall into that trap with all the rest of the one-day wonders. We like what we've seen so far though.
And what is it that we've seen so far? The buy-in for EPIX Pharmaceuticals on Friday was done on huge volume. Though today's still a little iffy, the stock's held its ground, and were seen volume that's at least on pace with Friday's. Like we said, it's not solid yet, but well worth watching over the next few days... considering shares were trading in the $6's just a couple of years ago.
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Allied Irish Banks, plc. (ADR) (NYSE:AIB) fell under a major support line last week, and appears to be en route to another one. The problem is (in a good way), the other line is well under current levels, and that move along could be worth a short/bearish position.
The first support line for Allied Irish Banks traces the key low points going back to the big July of $3.80. It looked like it might hold up, but it failed last week around $8.60. The next support line for AIB traces all the major lows prior to July, going back to March. It's currently at $5.60, and rising modestly each day.
One observation that leads us to believe this breakdown will materialize further... Allied Irish Banks shares have been falling on average volume. We'd like to see AIB slide lower on rising volume, but at least the selling volume isn't getting weaker.
We examined VeriChip Corporation (NASDAQ:CHIP) on October 9th, but for the same reason we're reviewing it again today. So, for many of you this is a review and confirmation. For others, it's a new opportunity.
The key to the downtrend from VeriChip has been the falling resistance line we've seen take shape since the September peak. It was never tested until the 9th when CHIP rallied hard for a day, touched the line, and then fell back again; it's been sliding lower for most of the time since then.
We mention it again today simply because today's strong open carried VeriChip shares - once again - right up to that line, and sure enough, the stock's struggling. There may be support around last week's low of $1.80. However, we suspect the September gap at $1.22 will be pressured for closure.
If you'd like to know of any changes in our opinion of EPIX, BEE, CHIP, and AIB (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.
The last time we looked at Strategic Hotels & Resorts Inc. (NYSE:BEE) was on September 17th, mentioning that we'd be willing to make an exception with the breakout at the time, and actually buy into it. It's a good thing we did.
At the time, Strategic Hotels & Resorts shares were trading at $2.09. Our only worry was potential resistance around $2.29, but with the current price of $2.76, not only was that ceiling not a problem, but BEE is higher by 32%.
We bring it up again now simply to re-pose it as a buy at an advantageous entry level. Strategic Hotels & Resorts dipped quite a bit after peaking at $3.07 in late September, but the buyers have come back to the table despite the pullback threat. BEE is being accumulated again - pretty heavily. It's likely to be action worth following.
Strategic Hotels & Resorts was trading in the $20's just a couple of years ago, so the recovery potential here is tremendous.
Nine times out of ten we'd look at a chart like the one we're seeing for EPIX Pharmaceuticals, Inc. (OTC:EPIX), and just dismiss it as untrade-able volatility. This time though, there's just something compelling about EPIX when we view the bigger picture.
Just to be clear, EPIX Pharmaceuticals aren't out if the woods yet. These surges out of nowhere are frequently a recipe for disaster, and EPIX could easily fall into that trap with all the rest of the one-day wonders. We like what we've seen so far though.
And what is it that we've seen so far? The buy-in for EPIX Pharmaceuticals on Friday was done on huge volume. Though today's still a little iffy, the stock's held its ground, and were seen volume that's at least on pace with Friday's. Like we said, it's not solid yet, but well worth watching over the next few days... considering shares were trading in the $6's just a couple of years ago.
----------------------------------------------------------------------
Sign-up for Free to Receive Future Commentary and
Trading Alerts on BEE, CHIP, AIB, and EPIX.
----------------------------------------------------------------------
Allied Irish Banks, plc. (ADR) (NYSE:AIB) fell under a major support line last week, and appears to be en route to another one. The problem is (in a good way), the other line is well under current levels, and that move along could be worth a short/bearish position.
The first support line for Allied Irish Banks traces the key low points going back to the big July of $3.80. It looked like it might hold up, but it failed last week around $8.60. The next support line for AIB traces all the major lows prior to July, going back to March. It's currently at $5.60, and rising modestly each day.
One observation that leads us to believe this breakdown will materialize further... Allied Irish Banks shares have been falling on average volume. We'd like to see AIB slide lower on rising volume, but at least the selling volume isn't getting weaker.
We examined VeriChip Corporation (NASDAQ:CHIP) on October 9th, but for the same reason we're reviewing it again today. So, for many of you this is a review and confirmation. For others, it's a new opportunity. The key to the downtrend from VeriChip has been the falling resistance line we've seen take shape since the September peak. It was never tested until the 9th when CHIP rallied hard for a day, touched the line, and then fell back again; it's been sliding lower for most of the time since then.
We mention it again today simply because today's strong open carried VeriChip shares - once again - right up to that line, and sure enough, the stock's struggling. There may be support around last week's low of $1.80. However, we suspect the September gap at $1.22 will be pressured for closure.
If you'd like to know of any changes in our opinion of EPIX, BEE, CHIP, and AIB (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.
James E. Brumley is a paid contributor of the SmallCap Network. James E. Brumley's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
