Well, That Didn't Take Long: KERX, FCEL, & SSN at the End of the Line, For Better or Worse

As fun as it is to highlight stocks that are on the verge of a breakout, it's also only half the battle - at some point those holdings need to be exited. As such, rather than our usual "this chart looks good now" take we tend to focus on here at the SCN, here's a "this rally is nearing its end" take on recently-mentioned FuelCell Energy, Inc. (NASDAQ:FCEL), Keryx Biopharmaceuticals (NASDAQ:KERX), and Samson Oil & Gas Limited (AMEX:SSN).

If the name Keryx Biopharmaceuticals rings a bell, it may be because James Brumley took a long analytical look at it yesterday, pointing out that it was hanging by a thin thread right above a flimsy support line at $3.15. And, Brumley didn't really think KERX was going to hold up, thinking the ultimate outcome here was going to be a retest of the now-entwined 50-day and 100-day moving average line at $2.87. As it turns out, he was right.

More than that though, the move to the key floor has also jump-started a new rally... right where is should have, where there's plenty of support. All it took from KERX today was a brief kiss of those two moving averages, and poof - this chart is looking to close out the day at the upper end of its range, and looking to make it even higher. In other words, Keryx Biopharmaceuticals just washed out its dead-weight (weak holders) and looks ready to renew the bigger uptrend that started to bloom in January.

Back on February 17th I mentioned that crude oil prices as well as crude oil demand (the two don't go hand in hand as much as you think) was starting to really pay off for explorer Samson Oil & Gas Limited, which was starting to show real promise with a couple of its developments. All we needed to see SSN do was clear a hurdle at $2.30, and it would be off to the races. Problem is, it was a little too off to the races for my comfort. Now the stock's just overbaked, and I've got a feeling due for a dip.

As it stands right now, SSN has just blasted past its 200-day line at $2.42, and has rallied 30% beyond $2.30 in just three days. Volume has been huge too. That's just too much. Don't get me wrong - the move abates a massive amount of any lingering doubt with Samson Oil & Gas Limited. We just need to burn off some of this overbought pressure before round 2 begins.

Finally, the last look we took at FuelCell Energy, Inc. was back on January 24th when Matt Briar pointed out the chart was starting to take repeated swings at a cross above the 100-day moving average line. If it could get over that hump, there was a lot of space to rally before hitting another headwind. Sure enough, three days later (the 27th), FCEL finally made its first close above the 100-day average and absolutely took flight by February 7th. All told, this chart rallied from $1.01 to $1.72 after Matthew called it. Nice pick MB!

Anyway, while I don't want to poach or interfere with someone else's pick, at this point - today - I think we're seeing the last near-term hurrah. FCEL left behind a bullish gap at the open en route to an 11% gain, and we're seeing the volume floodgates open. Yes, traditionally this would be a bullish sign for FuelCell Energy. When you're talking about a small cap stock after this kind of move though, this week's action actually hints of a blowoff top - an end to the move.