PACR, BIOF, and GRH are Put Under the Trading Microscope
BioFuel Energy Corp., Pacer International, and GreenHunter Energy are put through the trading paces.
My only problem with getting bullish on GreenHunter Energy, Inc. (GRH) is that the company isn't profitable, and it isn't expected to be in the foreseeable future. That's not to say it isn't buy-worthy, as you own stocks for where they're going rather than where they are. In this case though, you just can't trade this momentum indefinitely, since eventually the market will have a hard time justifying a perpetual rally.
Anyway, for the time being it's looking like GreenHunter Energy is turning into a good near-term upside trade.... though ironically I'm using a weekly chart to make the point. We've seen a great string of higher lows (orange) since August of last year. We've walked above all the key moving averages, and we're still going strong. This uptrend could stall at the ceiling around $1.48 (blue), but if that line snaps too, this thing could soar. Just consider $1.48 a checkpoint for now.
It's tough to believe you could find anything bullish on a day like today, or even anything bullish for the last few days. BioFuel Energy Corp. (BIOF) has done the deed though, and it may well be just the beginning of a much bigger upside move.
The chart really puts BIOF into perspective. On Wednesday of last week the downtrend was stopped cold by a big bullish pop on huge volume. Thing is, neither the reversal nor the buying volume has waned. I suspect BioFuel Energy Corp. will remain strong - and rise - as long as oil stays expensive, which as we head into summer against a backdrop of geopolitical turmoil could be for quite a while. Worth a swing.
Not every stock is looking as juicy as BioFuel Energy and GreenHunter Energy though. Pacer International Inc. (PACR), for instance, is on the verge of going from bad to worse. For the third time since August the support line at $5.00 is under attack, but with the bigger tide having turned bearish with the last tumble (from February), this thierd attack may well be the one to do the job and torpedo PACR once and for all.
This chart really tells the tale. Pacer International shares are already under their 61.8% Fibonacci retracement line, and are knocking on the door of $5.00. Between all the technical damage already done and that gap from last February ($4.12/4.37) still aching to be closed, the deck looks stacked against the bulls here.
Anyway, for the time being it's looking like GreenHunter Energy is turning into a good near-term upside trade.... though ironically I'm using a weekly chart to make the point. We've seen a great string of higher lows (orange) since August of last year. We've walked above all the key moving averages, and we're still going strong. This uptrend could stall at the ceiling around $1.48 (blue), but if that line snaps too, this thing could soar. Just consider $1.48 a checkpoint for now.
It's tough to believe you could find anything bullish on a day like today, or even anything bullish for the last few days. BioFuel Energy Corp. (BIOF) has done the deed though, and it may well be just the beginning of a much bigger upside move.
The chart really puts BIOF into perspective. On Wednesday of last week the downtrend was stopped cold by a big bullish pop on huge volume. Thing is, neither the reversal nor the buying volume has waned. I suspect BioFuel Energy Corp. will remain strong - and rise - as long as oil stays expensive, which as we head into summer against a backdrop of geopolitical turmoil could be for quite a while. Worth a swing.
Not every stock is looking as juicy as BioFuel Energy and GreenHunter Energy though. Pacer International Inc. (PACR), for instance, is on the verge of going from bad to worse. For the third time since August the support line at $5.00 is under attack, but with the bigger tide having turned bearish with the last tumble (from February), this thierd attack may well be the one to do the job and torpedo PACR once and for all.
This chart really tells the tale. Pacer International shares are already under their 61.8% Fibonacci retracement line, and are knocking on the door of $5.00. Between all the technical damage already done and that gap from last February ($4.12/4.37) still aching to be closed, the deck looks stacked against the bulls here.
Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
