The market scored another big win on Tuesday, but with the overall trend still in question, it's prudent to pick and choose trades wisely. On that note, Discovery Laboratories Inc. (DSCO), Timberline Resources Corp. (TLR), Antigenics Inc. (AGEN), and Devon Energy Corporation (DVN) are poised to be the market's big near-term movers. Take a better look at their charts.
Though Tuesday's pop may have taken
Timberline Resources Corp. (
TLR) to overbought levels in the short run, we've seen enough from this chart to say this is indeed a breakout effort.
The big clue was volume. Nearly a million shares of TLR traded hands on Tuesday - almost all of it bullish. It was the strongest accumulation day we've seen from Timberline Resources in months, and put the chart within striking distance of new multi-month highs. The move above resistance at $0.74 didn't hurt either.
One thing to bear in mind about Timberline Resources... it's moving in a stair-step pattern. It will jump, that plateau, then jump, then plateau, and so on. We've it enough now to rely on it though, so be patient if you jump on this likely breakout.
By the way, TLR was trading at $4.00 last year, so there's lots of room to recover.
Before piling on the
Devon Energy Corporation (
DVN) bandwagon, know that we've seen the stock jump before without a lot of follow-through.
The support lines marked on the chart explain. Last week's low of $62.60 touched a minor support line that prompted a bounce. However, we've seen Devon Energy shares bounce before.... but no higher than a key resistance level, currently at $74.00. Not that a move from $66.00 to $74.00 would be bad, but it sure wouldn't be worth the trouble.
There's always a chance DVN could crack that ceiling, and it might now. History has shown this is apt to be a short trip though, so don't be lured.
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We mentioned a bearish view of
Discovery Laboratories Inc. (
DSCO) back on September 30th, so this is actually a follow-up.
At the time, DSCO was trading at $1.40... up sharply for that day, but running into a major resistance line. Since Discovery Laboratories shares had not done well with that ceiling before, we assumed it would falter again (as it has at least half a dozen times). Well, Discovery Laboratories is currently at $1.06, and still headed lower. Liker we said....
Anyway, there's some support around $0.91 that may be an issue for DSCO, and the selling volume has been getting lighter. It might not be a bad idea to tighten the stop and/or take some profits here.
Finally,
Antigenics Inc. (
AGEN) is hanging by a thread. A key rising support line snapped last week, and the remaining horizontal support level is close to be being broken as well. If this stock falls under $1.98, it could be in real trouble.
But will it happen? Sure, the support line is under attack, but Antigenics is holding on reasonably well. So, there's no need to jump the gun, right? Well, that's true, but one thing we've not seen with the recent slide back from AGEN is tapering volume - the selling volume has been persistent (as have the lower highs). So, the odds favor a breakdown.
As for target prices, there's a potential support line at July's low around $1.50. If Antigenics cracks that floor though, there's no floor again until $0.65.
If you'd like to know of any changes in our opinion of TLR, AGEN, DSCO, or DVN (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.
