Want to know where the action is going to be, and how to trade it? Then put Trina Solar Limited (NYSE:TSL), Gulfport Energy Corporation (NASDAQ:GPOR), and Galena Biopharma Inc. (NASDAQ:GALE) on your radar this morning. All three are moving into a position for big movement; here's what to look for.
After yesterday's 16% jump from Gulfport Energy Corporation, most traders would agree that the stock's technically overbought. Yet, most of those same traders would probably also agree that GPOR has a ton of momentum, and might ignore the overbought pressure and keep on chugging higher. Yet, that debate isn't the one that should worry the bulls the most. The bigger reason Gulfport Energy Corp. shares are in trouble is really only clear on this weekly chart.
In simplest terms, GPOR is within pennies of a major, long-term horizontal ceiling around $37.50. It's topped out the last four times that level was reached, and as overbought as the stock is now - even if just in the short run - odds are very good this resistance line is going to up-end the rally for a fifth time. Just know that it may take a few days for the rug to get pulled out from underneath Gulfport Energy Corporation shares.
Galena Biopharma Inc. was actually pegged as a bounce play back on November 13th, after a huge plunge on the 12th was reversed abruptly, and decisively. And, though it's been volatile since then, GALE has basically made good on the bounce effort (up 5%). However, given what's happened over the past two weeks, that short-term bounce effort is about to turn into a longer-term breakout move... if one more hurdle can be cleared. And, the odds are that it will.
If nothing else, it's clear that GALE is finding support at the all-important 200-day moving average line. That's huge in itself. As of yesterday though, we can see the stock's using the 200-day average as a pushoff point, and testing the 20-day and 50-day moving averages as resistance. Galena Biopharma still needs to clear the 20-day and 50-day lines in order for this potential rally to materialize. But, the odds are good, and the size of the potential upside is significant. Definitely worth watching.
Last but not least, though it appears that investors can't get rid of solar panel stocks fast enough, eventually, everything ends. Eventually, a stock can't possibly justify any lower price. That's where Trina Solar Limited is now. Or more specifically, that's where the stock was last week. Now, TSL has made a pretty convincing rebound effort, and put the cherry on top with yesterday's high volume rally. It's still way oversold though, meaning there's plenty of room for more recovery.
Just for the sake of fairness and completeness, TSL isn't profitable, and isn't expected to be next year either. But, at only 0.14 times sales, the stock is still woefully undervalued; even the slightest dip into the black ink would be (relatively) huge for shareholders. And, considering the outlook for Trina Solar Limited - along with most other Chinese panel makers - is starting to be better than first assumed instead of worse than first assumed, we may have finally seen a much-needed sea change for the solar industry.