Aug 27, 2010 10:04 AM PDT
Stocks are back in a bullish mood again today (so far), so it's not a major surprise that two of our three focus stocks are also of the bullish variety. Here's a closer inspection of charts of GenVec, Inc. (NASDAQ:GNVC), Emisphere Technologies, Inc. (OTC:EMIS), and ADVENTRX Pharmaceuticals, Inc. (AMEX:ANX)... a few of today's most trade-worthy picks.
It's been forever since I looked at ADVENTRX Pharmaceuticals, Inc. (AMEX:ANX), mostly because I haven't needed to. Back in October I was expecting a push off a major support line, but it never materialized.... or at least not for several weeks. Now that it has though, it's time to dust off the original message.
To show you the kind of detail I need to for ADVENTRX Pharmaceuticals, I had to zoom in to only the past few months. By doing so, you now can't see that ANX had hit resistance around $0.20 several times over the year (six times total). Last weekw as the 7th instance, and it already looks like we're going to see a repeat of that pullback (range-bound) pattern.
Take a look at the volume bar for Friday; it was weaker than Thursday's even though ANX made solid gains. And, ADVENTRX Pharmaceuticals, Inc. shares are now stochastically overbought to boot. The last time they were, the stock pulled back. Seeing today's gravestone doji further hints of a top. I'd be selling (and maybe even shorting) ANX at these levels.
Sign-up for Free to Receive Future Commentary
and Trading Alerts on GNVC, EMIS, and ANX.
GenVec, Inc. (NASDAQ:GNVC) has been trending higher since November of last year. Though it's got a fairly high beta, the overall uptrend has been far more reliable than that of almost any other stock since then. So, the trick to managing this stock has been stepping in at low points and exiting at high points (if you didn't want to stock with it for the long haul).
Well, we just completed one of those dips; I think now's a great time to step into GenVec, Inc. As you can see on the chart, GNVC became stochastically oversold last week. Today's pop from the stock not only snaps the weak patch, but also started to unwind the stochastic bearishness by pushing the %K line (red) above the oversold threshold.... a very good buy signal for this stock, as you can see.
As for a target, odds remain good that the rally will slow down and reverse about the time when GenVec, Inc. becomes stochastically overbought again. That will probably be around $1.35/$1.40 or so, which would be a great exit point for GNVC short-termers. To long-termers, it won't matter that much. Either way, that's likely to be the way GenVec's chart plays out.
I was going to take a bullish view of Emisphere Technologies, Inc. (OTC:EMIS) anyway, based strictly on the upward momentum after a deep low. It just so happens that I have a couple of confirming technical clues to support my thesis.
In short, Emisphere Technologies are on the rise after making a strong pullback from $1.49 to a low of $0.46 between May and October. The recent rebound from that low to the current price of $0.89 is almost a 100% gain for EMIS, yet is only about halfway back to the prior high. In other words, this chart has lots more room for upside.
At the same time, EMIS has been gathering volume on the way up.... hinting at longevity. Just last week, Emisphere Technologies shares pushed above the 38.2% Fibonacci retracement level, knocking out one of the key ceilings that could bring a quick end to the uptrend. With the hurdle out of the way and some new buying interest, I think Emisphere is good for at least a move up to the next Fib line at $1.09. And, perhaps more.
|
Follow any changes in our opinion of EMIS, ANX, and GNVC... Quickly identify trends in current market activity and receive |
|
