Stocks are up again today, though the rally still seems to be running on fumes. As that strength fades, most stocks will stagnate with the broad market. A
handful of charts, however, are hinting that bigger moves are just
now building for them. Those stocks include Flotek Industries Inc. (FTK), GenVec Inc. (GNVC), Rubicon Minerals Corporation (RBY), and YM BioSciences Inc. (YMI). Here's a more detailed look at each one.
Though slightly in the black today,
Rubicon Minerals Corporation (
RBY) shares are fighting an uphill battle. Yesterday's strong open may have added the proverbial straw to an already impressive string of gains, giving almost
all potential profit-takers a reason to get off the fence. The hint? Despite the strong open, we saw nothing but selling all day yesterday once the stock started trading at its new high price.
The clue to this possibility was actually given three days earlier, when RBY rallied on high volume out of an intermediate-term range and past resistance at $3.21. Rubicon Minerals gained for a couple more days, but on alarmingly less volume.
As for a downside target, let's use the prior support and resistance levels for the zone Rubicon Minerals was trading in; that means a return to $2.50 isn't out of the question for RBY. Even a move to $3.20 would take a bite out of the stock though.
Though
YM BioSciences Inc. (
YMI) is overbought following a giant move from $0.48 to $2.24 in July and August, the recent pullback from that high isn't necessarily an omen of a big tumble (though the risk of that is certainly baked in).
As the chart shows, YM BioSciences shares are finding support around $1.57, which happens to be the first of the major Fibonacci support levels... the 38.2% retracement level of the July/August runup. Simultaneously, notice that the pullback from YMI has been made -
so far - on minimal volume.
Though a break under $1.57 could start a sharp selloff for YMI, as it stands right now, the Fibonacci line is holding up. If YM BioSciences can make a higher-volume close above the recent ceiling at $1.81, we should see round two of bullishness.
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Though it hasn't happened quite yet,
Flotek Industries Inc. (
FTK) is on the verge of a major breakout. The problem is, the stock's been on the verge of this same breakout three times since May. Since this one
could be different though, it's worth putting on your radar.
The chart shows all but one encounter Flotek Industries shares had with the upper (and falling) resistance level going back to November of last year. Since March of this year, a rising support line has been added to the mix for FTK; it's been tagged five times.
With the triangle shape is coming to a point soon, one side or the other will have to give. While it's not a sure thing, the strong buying volume we've seen from Flotek suggests there's a lurking buying interest here.... they're just waiting to see the same breakout we're looking for.
In any case, put FTK on your bullish watchlist. No target, but your stop is at the lower/support line.
And finally,
GenVec Inc. (
GNVC) deserves an update after our September 2nd review.
At the time, GenVec was of interest to us because of the wedge shape the stock had gotten itself trapped in. The upper/falling resistance line had halted
yet another breakout attempt, and was forcing GNVC to make lower highs. The pullback to a low of $0.71 since then has defined a less-important (though still important) rising support level.
Despite a strong open today after yesterday's bounce off that support line, it should be noted the strength faded for GNVC shortly after the open - the stock doesn't even seem to be able to attack the upper line any longer.
Point being, don't get too excited about GenVec yet, if you were eyeing the modest strength form the last three days. It hasn't even made a dent in the stock's bigger hurdles.
By the way, a break of either of those lines would be a trade-worthy event.
If you'd like to know when or if we issue trading alerts specifically for RBY, GNVC, FTK, and YMI, then be sure to subscribe to our free e-newsletter. It's delivered two to three times per week.
