Don't think for a minute there aren't tons of trading opportunities around.... you simply have to look past all the lousy ones. Right now, RPM International Inc. (RPM), SciClone Pharmaceuticals, Inc. (SCLN), PAETEC Holding Corp. (PAET), and EntreMed Inc. (ENMD) are among the best.... just don't assume they're all bullish. Here's a closer look at their charts.
It may have been a long time in the making, but
PAETEC Holding Corp. (
PAET) has indeed started a long-term breakout.... and confirmed it today.
To really do it justice, let's examine a weekly chart of PAETEC Holding shares. The key signal here was the break above the ceiling at $3.54. That's where PAET had trouble not just in March and April, but was also a problem in August of last year. Last week though -
and after plenty of buying volume - the hump was crossed.
From here, PAETEC Holding shouldn't hit turbulence until $6.50, and then $8.80. It took more than a day to do it, but PEAT is making a breakout.
Unlike PEATEC,
EntreMed Inc. (
ENMD) has just started a breakout move today - and it's a good one so far.
The chart tells the story well. EntreMed has been trapped in a wedge shape since May, but it's been getting so tight lately that the stock had nowhere left to go but outside that shape. And, it did. ENMD broke above the resistance side of the triangle today. Better still, the break's been made on bullish volume.
EntreMed could make its way back up to the $0.80 area before hitting too much of a headwind.
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RPM International Inc. (
RPM) is in serious trouble. The 2% tumble today isn't a huge problem by itself, but the fact that the stock's fallen back from today's high of $18.72 is a problem.
It's called an outside day reversal. It consists of a higher high and a lower low (compared to the prior day), with the stock pointed in the exact opposite direction on the second day. The fact that RPM International is making an outside day on strong volume just makes the pivot that much more likely.
As for a target, RPM has a couple in the near-term picture that could quench the selling. There's rising support at $16.10, and horizontal support at $15.80. Hitting either wouldn't be a bad trade, but the real money would be made by RPM International breaking under support at $15.80 (which was also resistance just a few months back).
This isn't our first look at
SciClone Pharmaceuticals, Inc. (
SCLN).... but it may be our last in a while. We posted a bearish view on the chart back on
September 22nd, and today's 14% dip is a better exit (short covering) opportunity than an entry excuse. In fact, we're seeing hints that SCLN could rebound from here.
The key to the pullback was continued resistance at the falling resistance line we discussed then. Well, the resistance line held, and SciClone have fallen from $4.38 then to the current price of 3.60 0 about a 17% gain.
Today's bar for SciClone Pharmaceuticals, however, is likely to be a hammer-shaped bar.... a strong reversal pattern. Couple that with a big gap, and you have more upward pressure on SCLN now than downward pressure.
If you'd like to know of any changes in our opinion of PAET, SCLN, RPM, or ENMD (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.
