Stock Watchlist 5 January 2015

Stock Watchlist 5 January 2015

First off, I am sure some of you have been wondering where I have been. I did not post a watchlist on Friday, and have been off chat/Twitter/StockTwits for the past few days as well. For those of you who do not know, I do not do this full time – I am currently in the Army and have been taken away on a 28-day training mission so my access to computers is extremely limited. I also have no access to Twitter – only StockTwits so if you have been trying to message me on Twitter then you will have to wait. Therefore, bare with me as I will only be able to update this sparingly. Hopefully the YouTube video I posted can help some of you scan for stocks on your own. Anyway…to the watchlist.

DARA

DARA has been extremely hard hit over the past few months and has formed a solid base over the last three months. On Friday, DARA broke over three month resistance at 0.95 on slightly higher volume. This stock has, in the past, had some big multi-day runs before falling back so keep this on your watchlist since a test of its 200 MA is not out of the question. Notice the huge RSI (14) breakout also.

ETRM

ETRM broke out of one month resistance on Friday on solid volume after having a nice volume cluster over the past few trading days. If ETRM can break through its 200 MA, it can test next resistance at 1.59 (which is also weekly resistance). Notice the MACD crossover.

GFI

A lot of mining stocks had a strong Friday and GFI was no exception moving up to short-term resistance at 4.66. Mining stocks generally move in groups so if they can continue to be strong, look for GFI to test next resistance at 4.92. Notice the recent MACD crossover.

STRI

STRI has formed a tight cup-and-handle formation over the past two weeks and pushed right up against its 200 MA. On Friday, STRI finally broke its 200 MA with a nice volume pop. Next resistance for this stock is at 0.59; if that breaks, this could easily re-test its September high.

TRQ

TRQ has fallen back heavily from its high in the first weeks of September; one could easily argue that it is still in a downtrend. That being said, notice how TRQ pushed right up to short-term resistance on Friday whilst also crossing over its 50 MA. Also notice how volume has been increasing in TRQ over the past few trading weeks and its recent MACD crossover.

THLD

Another biotech stock that, like DARA, has been pretty badly beaten down since forming its high at the start of September. Notice how THLD also has formed a solid three month base over the October-December period, forming higher lows since the second week of November. Thus, notice THLD has formed a two month ascending triangle formation and, on Friday, pushed right up to resistance at 3.44 with increasing volume. Notice also its RSI (14) breakout on Friday – definitely one to watch this week.

Other Stocks to Watch:

AMCN – We have had AMCN on our watchlists before during its strong late 2014 run; since then, it fell back to its support at the 50 MA. Notice how it never really fell below its 50 MA and bounced off the 2.25 low in mid-December. Now AMCN has been forming higher lows and it approaching short-term resistance at 2.67. Look for a cross of that level and it could easily re-test its highs at 3.20. Low volume stock though so just keep that in mind.

ATEN – ATEN has formed a huge base over the October-December period, moving off its double bottom formation in December. I like how, since mid-December, ATEN has been forming higher lows on steady volume. On Friday, ATEN crossed over resistance at 4.48 – now it has to cross resistance at 4.63 and this thing could really fly. Notice how it crossed its 50 MA and held that break – all positive actions. Also notice the huge six month RSI (14) breakout – one to watch.

QUIK – QUIK has formed a solid two month flat top formation at 3.29 that we can watch for a break at that level. If QUIK can break the 3.29 level then we could see it test its 200 MA at 3.81.

STEM – Stem cell stocks are one of those groups of stocks that, when they start to move, move fast and as a big group (just look at STEM’s price action back in the summer of 2014). STEM broke short term resistance on Friday and could really move if momentum continues in this sector.

RIC – This has been a big favorite of mine on this website during previous gold miner run and gave those who played it some really nice profits. Relative strength is an extremely important concept – what stocks stay strong even when their sector is weak – and RIC is a perfect example. When gold miner stocks have been not as strong through the late months of 2014, RIC still remained near its highs and never closed below its 50 MA. Now that gold miner stocks are heating up again, RIC should be kept on watch – it crossed short term resistance on Friday on increasing volume and also looks like it is about to have a MACD crossover.

Chart Updates:

BTX – Biotech stock that we featured on the December 29th watchlist that finally broke out of its multi-month flat top formation on really strong volume. Look for a continuation this week as this could continue to run.

FOMX – FOMX broke out of its ascending triangle formation on Friday – the next big level for this stock is $8. Not only is it a whole number (whole number breakouts are powerful) but it is also a prior level of resistance that dates back from its IPO. If this can break $8, then the next level ahead of it is $11!

SAND – With gold miners strong, SAND finally broke out; just not on the volume I would really like to associate with a huge breakout. Keep this on watch, however, for a continuation because, if miners are strong, this could continue and re-test its 200 MA.

SZMK – SZMK continues to form higher lows and has pushed right up to resistance again on Friday. Look for that 6.72 break as SZMK continues to slowly close its gap from back in October.

Trade Under Ten’s Positions:

Note: I do not alert when I buy and sell “real-time”. First of all, I have a full-time job so I cannot be in chat/on social media all day long. Second, I find that each trader/investor should be their own discipline and be able to think for themselves. Maybe one day I will but at this point I do my own trading and will update you here daily.

– I own EAC. God damn – that fell right through support on Friday did it not? Perfect example of how important hard stops are especially since I could not watch the market on Friday. I will look to liquidate my position tomorrow since this broke support.

– I own TVIX at $2.45.

Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in Trade under $10 Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.

I have no positions in any stocks mentioned in this post

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Stock Watchlist 5 January 2015

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