Aug 27, 2010 10:04 AM PDT
There was a bastion of hope for Capital Trust, Inc. (NYSE:CT), as long as support at $2.55 held up. Today's low of $2.42 tells us pretty clearly that it did not hold up. The early warning for a pullback from CT actually came on September 24th, following a couple days worth of surge, and a pullback that was pretty strong. The downside wasn't clinched for Capital Trust shares, however, until today's move to new multi-week lows. If you look closely (and squint just right), you can see a head-and-shoulderish pattern as well.
As for a downside target, you should know that Capital Trust is no stranger to big, long moves.... even in 2009. A return to July's low around $1.20 is entirely possible for CT, though selling volume would need to ramp up to drive the stock all the way there.
Avro Energy Inc. (OTC:AVOE) may be one of the market's better-kept secrets right now. On the other hand, if today's volume is any clue, then the secret is out.Just to be fair, this is purely a trading call based on the chart - the fundamentals from Avro Energy don't support a bullish opinion yet, but they don't need to. What I'm seeing on the chart of AVOE is a nice, slow reversal that's been gathering more buyers - as evidenced by rising volume - on the way up. It's exactly what you want to see.
As for an upside, I don't think it's reasonable to assume Avro Energy have what it takes right now to exceed the August peak of $2.46, though I don't think it's crazy to assume it will at least retest that mark.
Again, this is strictly a chart-based trade idea for AVOE.... I love these slow, bowl-shaped turnarounds.
----------------------------------------------------------------------
Sign-up for Free to Receive Future Commentary and
Trading Alerts on CT, AMLM, BANR, and AVOE.
----------------------------------------------------------------------
I came across Banner Corporation (NASDAQ:BANR) yesterday, and dismissed it as the time. I live high-volume breaks above major resistance lines, but for one reason or another, I didn't warm up to this one.
In retrospect, it was clearly the wrong choice to ignore Banner Corporation, as the stock's raging again today on even higher volume. Yet, there's still enough upside left to bother with putting BANR on your radar today.
The chart says it all. The falling ceiling was snapped with one good shot, and the buyers are coming back for even more Banner Corporation shares today. I don't foresee any major resistance for BANR in the near future, though the 38.2% Fibonacci line at $3.96 has been a little turbulent for us before. I'm eying the bigger target at $5.00 though.
Finally, it may have been a great ride with American Lithium Minerals Inc. (OTC:AMLM), but I think the party's over. In other words, I think it's time to take profits and move on.I can't recall the last time I saw hype drive a stock higher as well as I witnessed it with American Lithium Minerals over the last two months. Those bubbles never last though, and I think the AMLM bubble just popped today after yesterdays blowoff top.
My worry here isn't just that American Lithium Minerals is overbought. What I'm keying in on is the extreme height of yesterday's gaining bar, and the equal height of today's bearish bar. Moreover, the close at the high yesterday and the open at the high today just suggests this is the pivot point where the bulls relinquish control of ALML to the bears. Volume behind today's selling is alarmingly strong.
The 'ideal' two-bar reversal pattern (to the downside) would be a close today at or under yesterday's low. If not today, the effect on American Lithium Minerals would still be the same if it happened tomorrow.
If you'd like to know of any changes in our opinion of AVOE, CT, AMLM, and BANR (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
