Two You Want, One You Don't: SD, PRKR, and AMEL in Focus
Amerilithium Corp., Parkervision, and SandRidge Energy are run through the technical trading wringer.
About three weeks ago I suggested a bullish trade on SandRidge Energy, Inc. (NYSE:SD) was a good idea.... if it could just clear the technical ceiling at $8.00. Well, it did, and how. Since closing at $8.09 on the 7th, we've seen SD shares soar 30% to the current price of $10.52.
I don't come back to it to brag or gloat though. I'm coming back to it to suggest selling it. Between Friday's bullish gap and today's now-closes bullish gap, the bulls are pressing their luck. Even more, we've already seen SandRidge Energy shares give us a strong reversal bar today, opening at the high, and proceeding lower very quickly. The fact that it's getting comfortable near the low for the ay underscores the new selling mentality. Lock it down while you can.
Most of the time I'm not a big fan of jumping on a stock just because we're seeing new strength that we haven't before. In the case of Amerilithium Corp. (OTC:AMEL) though, I'm (mostly) willing to make an exception and say AMEL is a buy, even if a little speculative.
This chart says it all. Though it's not yet a 'trend' yet, Amerilithium shares have handed us a very slow and subtle bowl-shaped reversal effort over the last several weeks, and as of today this small cap stock has punched through the resistance at its 50-day moving average line (purple), with very high volume to boot. Yes, we've seen similar moves like this one fail before [see November], but this one is much healthier than any of the prior ones.
And finally, I've been watching Parkervision Inc. (NASDAQ:PRKR) for quite some time, waiting for the final bullish blow to be struck that would really make this stock a compelling buy. Though it actually hasn't crossed that point yet, I've seen enough persistent strength in the meantime to go ahead say PRKR is an outright buy.
It's mostly a 'momentum' play, though with a good dose of 'recovery' for good measure. Parkervision shares are up 108% since early December, which would normally be daunting, but in this case clearly isn't. This small cap was hovering around $2.00 in early 2010, and was averaging around $10.00 in 2008. Compared to only $0.80 now, there's a ton of upside here.
And just so you know, what I was waiting on was for PRKR to move above the 200-day moving average line (green) at $0.82 before calling it buy-worthy. Given the high-volume progress we've seen though, that's not necessary. In fact, I think it's necessary to be in a trade before we see the 200-day line crossed, as I suspect that big technical event will draw a lot of eyeballs of folks who will immediately step in based on everything else I've already mentioned today.
I don't come back to it to brag or gloat though. I'm coming back to it to suggest selling it. Between Friday's bullish gap and today's now-closes bullish gap, the bulls are pressing their luck. Even more, we've already seen SandRidge Energy shares give us a strong reversal bar today, opening at the high, and proceeding lower very quickly. The fact that it's getting comfortable near the low for the ay underscores the new selling mentality. Lock it down while you can.
Most of the time I'm not a big fan of jumping on a stock just because we're seeing new strength that we haven't before. In the case of Amerilithium Corp. (OTC:AMEL) though, I'm (mostly) willing to make an exception and say AMEL is a buy, even if a little speculative.
This chart says it all. Though it's not yet a 'trend' yet, Amerilithium shares have handed us a very slow and subtle bowl-shaped reversal effort over the last several weeks, and as of today this small cap stock has punched through the resistance at its 50-day moving average line (purple), with very high volume to boot. Yes, we've seen similar moves like this one fail before [see November], but this one is much healthier than any of the prior ones.
And finally, I've been watching Parkervision Inc. (NASDAQ:PRKR) for quite some time, waiting for the final bullish blow to be struck that would really make this stock a compelling buy. Though it actually hasn't crossed that point yet, I've seen enough persistent strength in the meantime to go ahead say PRKR is an outright buy.
It's mostly a 'momentum' play, though with a good dose of 'recovery' for good measure. Parkervision shares are up 108% since early December, which would normally be daunting, but in this case clearly isn't. This small cap was hovering around $2.00 in early 2010, and was averaging around $10.00 in 2008. Compared to only $0.80 now, there's a ton of upside here.
And just so you know, what I was waiting on was for PRKR to move above the 200-day moving average line (green) at $0.82 before calling it buy-worthy. Given the high-volume progress we've seen though, that's not necessary. In fact, I think it's necessary to be in a trade before we see the 200-day line crossed, as I suspect that big technical event will draw a lot of eyeballs of folks who will immediately step in based on everything else I've already mentioned today.
Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
