The end of the week hasn't meant that the flow of trading ideas has dried up. On the contrary actually... we've found several compelling charts. Among the best of the best are Rite Aid Corporation (NYSE:RAD), Juniper Group, Inc. (OTC:JUNP), and Hemispherx BioPharma, Inc (AMEX:HEB). Here's a better look at each one.
Effectively a new issue since it's only been trading on any volume for a few days now,
Juniper Group, Inc. (OTC:JUNP) appears to have tremendous upside potential following today's bar.
We're keying in on two key things here.... the volume, and the height of the bar today as well as Wednesday. Both of them are huge, and both of them are bullish. Clearly something has changed dramatically for Juniper Group. What it is, we don't really know (and we don't really care), though recent news is the most obvious catalyst. We just know something lit a fire under JUNP, and odds are good this could present a free-ride opportunity.
We can't even set a reasonable target for Juniper Group, as there are no meaningful highs or lows to work with. Just play any JUNP trade by ear.
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Big trouble for
Rite Aid Corporation (NYSE:RAD) investors today.... the stock fell under a major support level, and there's only one potential support level left between the current price of $1.31 and a sub-$0.30 floor.
The support line in deck is horizontal support at $1.18, where Rite Aid shares found something of a base in June. On the surface this floor may seem fairly irrelevant (and I admit I almost dismissed it myself). However, it was also a resistance level for RAD in May. Resistance levels that become support levels - and vice versa - usually end up being important lines in the sand later on.
So, the outlook here is only a pending one. When and if Rite Aid falls under 1.18 though, I wasn't kidding about a move all the way back to the $0.25-ish area. The selling volume behind the current dip hasn't exactly been light.
And finally,
Hemispherx BioPharma, Inc (AMEX:HEB) has once again made its way to our center stage.
The Hemispherx saga has been one we've followed for quite some time. the bulk of our chapters have been bearish, though we've give traders a bullish nod a couple of times. Our last mention of HEB, though, was one of potential bearishness. Today, we're going a little bit further and saying that potential is unfolding as reality.
The expectation from the
October 12 commentary was that once Hemispherx BioPharma fell under a support line at $1.85, the selling would accelerate. Well, though it's not visually evident yet, the recent move to $1.70 has been the result of an acceleration following the break under support.
I'm still unsure of where HEB could ultimately land, but I've not yet ruled out a complete retreat back to the $0.50 area.
If you'd like to know of any changes in our opinion of RAD, JUNP, and HEB (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
