India Globalization Capital, Inc. (IGC), Tri-Valley Corp. (TIV), Ultralife Corp. (ULBI), and Dataram Corporation (DRAM) are among today's movers and shakers, but what can we glean from their charts that will tell us where they'll be tomorrow? Here's a quick technical look at each chart.
Before anyone has a heart attack because they own shares of
Ultralife Corp. (
ULBI), don't panic just yet. Today's 11$ dip is ugly, but nothing the stock hasn't survived before.
Today's low in the mid-$5 area was also roughly where ULBI found support in July, and again earlier in September. While deep in the red, we can also see Ultralife Corp. shares are already pushing up and off that support line today. So, there's a bastion of hope.
Bigger picture, the clear demise of Ultralife shares in the first half of the year is still a thing of the past; ULBI has been developing a base/horizontal range since July, giving itself a chance at a rebound. The resistance side of that zone is around the $6.90 area.
All that being said, there's a difference between having faith and being stubborn. If the mid-$5 area cracks as support, let it go.
Whether or not today's 30% rally from
India Globalization Capital, Inc. (
IGC) is a good thing or a bad thing depends on your perspective.
In the short run, it's bad in the sense that India Globalization Capital shares have not only jumped too far, too fast, but have also blown past a major resistance line at $1.95. Normally breakouts are a good thing, but IGC was not properly positioned to follow today's effort. Thus, we're looking for IGC to slide back... perhaps back to the support level around $1.20. (In fact, shares are already retreating from today's high of $2.23.)
In the long run, whenever a stock can chip away at resistance and hit higher highs, it makes it easier to do so the next time. It may be an ugly ebb and flow we're seeing from India Globalization Capital, but it's still a bullish one.
By the way, don't be shocked at all that IGC struggled once it reached the $2.13-ish area... that's a major Fibonacci retracement level. Getting past it will be tough, but when/if India Globalization shares do so, it should be huge (in a bullish way).
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Though it's far from a permanent condition (yet), shares of
Dataram Corporation (
DRAM) may be poised to fall, and fall hard, for the next few days. We're seeing a major inside reversal bar today after Friday's ridiculous runup.
Of course, that's the inevitable result when any stock shoots from $2.57 to $3.97 in one day, as Dataram shares did. In fact, DRAM had been as low as in the $1.30s in August. So, there's lot of profit-taking waiting in the wings. The big surge last week is just the excuse needed.
Don't freak out if you're truly a long-term holder of Dataram Corporation, as volume on the pullback has been light so far. Just know that you're probably going to give most of your recent gains up before moving higher again. DRAM could find the $2.00 are before it's all said and done.
It would have been easy to count
Tri-Valley Corp. (
TIV) out over the last couple of weeks, but today's 36% pop puts it back on the radar.
Normally we'd steer clear of the kind of breakout move we're seeing from Tri-Valley Corp. shares today, but this one isn't as much of a dead-cat bounce as we normally we see. Volume on the way down was fading, and the volume behind today's burst from TIV is very strong.
We have no target price for Tri-Valley, but we will mention TIV shares were trading in the $9's in the middle of last year. The key Fibonacci retracement levels for the high-to-low range are in the low $4's and the mid 6's.
If you'd like to know of any changes in our opinion of IGC, TIV, DRAM, or ULBI (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.
