2 Longs & 2 Shorts to Watch
By Harry Boxer
Here are two stocks with strong technical momentum and two with charts that look to be breaking down.
On the long side, First Solar, Inc. (FSLR) reached a new high for 2017 on Wednesday, hitting $65.43 intraday. It closed up $2.03 at $63.24 on heavy volume of 4.6 million shares traded. The stock has appreciated by 140% since April 3 and has been tearing up the chart since the renewable energy company's earnings announcement on October 26, buoyed by positive analyst opinion. Wednesday's move came with news of a strong 2018 forecast announced during the session at the company's analyst day. There is a multi-year resistance level at $71. But if the stock can close above today's high, $70 may not be far away.
Nutanix, Inc. (NTNX) rallied 3.5% Wednesday, closing at $35.20 on light volume of 3.1 million shares traded. The move up came with news of a positive research note issued by a Raymond James analyst. The stock has risen by 140% since May 1. Price has been consolidating in the $32-$38 zone since the cloud technology company's earnings announcement on November 30 and spiked up to the top of its rising price channel that day. There may be some continued short-term consolidation but next targets are $40 and $42.
On the short side, Charles River Laboratories International, Inc. (CRL) was up 66 cents, closing at $102.48 on light volume of 218,300 shares traded. The move came on news that the drug discovery company has boosted its gene-editing platform, offering more capability to its contracting biopharma clients. But this stock chart is not a pretty picture. Price dropped down hard on November 9 after the company's earnings announcement, falling out of its rising price channel and forming a 19-day bear flag in the $100-$105 zone. Given that, next targets on the way down are $93 and $86.
Medidata Solutions, Inc. (MDSO) declined by 41 cents, closing at $64.58 on 552,100 shares traded. It is the issue's lowest closing price since April 25. The stock took a major hit after the clinical development technology company's earnings announcement on October 26 and has failed to close above $71 since then. Price has now hit a significant support level established in 2014 and is in a bear flag consolidation within the $64-71 zone. If price breaks below that bear flag, $60 and $55 are the next targets.
Harry Boxer is founder of TheTechTrader.com, a live trading room featuring his stock picks, technical market analysis, and live chart presentations.