Wednesday, November 25, 2015

Straight Path Communications Inc (NYSEMKT: STRP)

Straight Path Communications Inc (NYSEMKT:STRP) is showing signs of bottoming out on the charts along with the MACD giving positive signals. The stock has just broke a potential falling wedge pattern which is usually bullish. A move past 10.44 could see a bounce till 12.50

Sunedison Inc (NYSE: SUNE)

Sunedison Inc (NYSE:SUNE) Strong bounce on heavy volume. The stock opened today`s session at $3.40 and intra-day was ranging at 3.14-4.25 ending the session with a strong gain of 37%. This could be the start of a nice rebound. The current rally should at least push the stock to 5.17 per share where the next resistance is. Stay tuned.

Macy's $M Has 130% Upside, Says Analyst

  • Market analyst Jeremy Skrezyna believes Macy’s, Inc. M could unlock tremendous value via corporate restructuring.
  • Skrezyna predicts Macy’s will soon follow the blueprint of Hudson’s Bay Company.
  • He values Macy’s real estate alone at $26 billion.
  • In a new article from SumZero, analyst Jeremy Skrezyna discussed why he sees 130 percent upside to Macy’s share price. According to Skrezyna, the key to Macy’s value is its real estate.

    Realistic Precedent

    It has become quite trendy in recent years for analysts to make hypothetical suggestions for how companies could unlock real estate value via corporate restructuring. However, Skrezyna believes that a solution for Macy’s is not simply a hypothetical. He is suggesting that Macy’s follow in the footsteps of Hudson’s Bay Company (HBC), which recently used mortgages and JVs to unlock real estate value.

    The Plan

    In his article, Skrezyna spelled out how each step of the HBC model would work for Macy’s.
    “I believe Macy’s will take the approach that has already worked for HBC: (i) get an appraisal on the Herald Square flagship coupled with a 35 percent LTV mortgage, using the cash proceeds to repay higher coupon debt and (ii) create a JV with an operator like SPG, contribute and leaseback a portion of fee-owned real estate in exchange for ownership of the JV, publicly float the JV, incur mortgage debt at the contributed properties just prior to contribution to generate cash proceeds, with the JV assuming the debt upon property contribution, and use the debt proceeds to repay existing debt and repurchase shares.”


    Skrezyna believes Macy’s real estate is worth $26 billion alone. Since the company’s enterprise value is $24 billion, Macy’s retail operations are currently valued at -$2 billion.
    Skrezyna predicts Macy’s management will eventually determine that this type of restructuring is too good of an opportunity to pass up. He forecasts that Macy’s will be fully valued at $90/share sometime within the next one to two years.

    Prima BioMed Ltd (NASDAQ: PBMD)

    Prima BioMed Ltd (NASDAQ:PBMD) was a big winner today as the stock ended up $1.23 on the day. I will be watching the stock on Wednesday for a continuation move through Tuesday’s highs of $1.27. Although this trend is encouraging the near-term outlook stays cautious till the stock closes conclusively above 1.35 on heavy volume.

    Tuesday, November 24, 2015

    Arca Biopharma Inc (NASDAQ:ABIO)

    Arca Biopharma Inc (NASDAQ:ABIO) broke out of a bottom/accumulation pattern today, as the stock closed up 47c or 8.94% on heavy volume, closing above the 50-day EMA for the first time in months. Today’s high is resistance for a follow through move on Tuesday. Looking at the technical chart above MACD and ADX both signal positive strength. The stock still trading above 9-day and 20-day exp moving average, also a bullish sign. Plus, the company will make a presentation at the 27th Annual Piper Jaffray Healthcare Conference on Tuesday, December 1 2015. I believe this conference on Wednesday could be a positive catalyst for ARCA biopharma shares.

    Canadian Dollar and the Two-Year Rate Differential

    The Canadian dollar is more than a petro currency.    It is also subject to the same forces of divergence that have lifted the US dollar more broadly.  Since the beginning of the year, the US two-year yield has risen 26 bp while Canada's two-year yield has fallen almost 39 bp.
    The graph shows two time series.  The yellow line is the US dollar against the Canadian dollar.  The white line is the two-year yield spread. 
    Earlier today the US dollar tested the multi-year high set in late-September just below CAD1.3460.  Today's high (according to Bloomberg) was about CAD1.3435.   The two-year yield spread reached a little more than 32.5 bp.   The multi-year high set in early August was a tenth of a basis point higher. 
    Consider what has happened since the middle of October, when the recent moves began.  The US dollar traded a little below  CAD1.2835. It rallied six big figures in a little less than six weeks.  The two-year differential fell to a low below 3 bp on October 15.  It has risen 29 bp over the same period. 
    Oil prices also fell during this period.  Note that the January 16 light sweet futures contract put in the recent high near $52 a barrel on October 10.  By October 15 it reached a low of almost $46.60.  It traded almost $40.40 today. 

    The argument here is not that the price of oil does not impact the Canadian dollar.  It is that the flow of capital is larger than the flow of oil and that the Canadian dollar is subject to the same divergence force that is lifted the US dollar against most currencies. 

    Avis Budget Group Inc. (NASDAQ: CAR)

    Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers worldwide. The company has three segments: North America, International, and Truck Rental. It operates the Avis car rental system with approximately 5,450 locations, that supply rental cars to the premium commercial and leisure segments of the travel industry; the Budget vehicle rental system with approximately 3,500 car rental locations, which serve the value-conscious segments of the industry; and Zipcar, a membership-based car sharing network that provides vehicles to approximately 915,000 members.
    Take a look at the 1-year chart of Avis (NASDAQ: CAR) with the added notations:

    CAR has been trading mostly sideways on top of a clear $40 support (green) during the most recent 4 months. Now that the stock appears to be testing that support level again, traders should be able to expect some sort of bounce. However, the stock’s recent dive is a bit concerning. If the $40 support were to break, lower prices should follow.

    The Tale of the Tape: CAR has a key level of support at $40. A trader could enter a long position at $40 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

    Monday, November 23, 2015

    Celldex Therapeutics, Inc. (NASDAQ:CLDX), Ambarella Inc (NASDAQ:AMBA), Google Inc (NASDAQ:GOOGL)

    Celldex Therapeutics, Inc. (NASDAQ:CLDX) which has been building momentum since late-October, broke out of its bullish consolidation on massive volume on news that its Rintega brain cancer vaccine reduced the risk of death from the disease by 47 percent in a 73 patient randomized study. Plus, the survival rate at 2 years was 25% for patients given the vaccine versus none in the control group, so I was motivated to buy more shares. This move broke the stock out of a triple top resistance zone that contained the upmove since August. From a technical standpoint daily technical indicators are looking bullish. The MACD is above its signal line and is moving up in positive territory. CMF is also positive and RSI has moved above its 60% level. On longer-term daily chart, the stock is trading below its 100-day and 200-day EMAs but well above its rising 50-day EMA. The short-term bull market is intact, despite being in a bear market in the medium-term. I think the stock next week can easily re-visit its 200-day EMA at $18.48, if not higher. Based on Friday's news, I expect upgrades coming soon.

    Ambarella Inc (NASDAQ:AMBA) traded nicely on Friday and I’m looking for continuation of the upward direction next week. The stock is a short squeeze candidate, with a short float at 43% equivalent to 6 days of average volume. From a technical standpoint, the daily technical chart shows that the stock is in a rally as %K line is rising on top of %D line as the price is back above the short-term EMAs and with a positive MACD action. The RSI is also rising along with the rise in volumes indicates buying interest in the stock. At the same time, price broke out of downtrend line which goes back to the September top. Can get interesting. Keep close eye on this one for a major rally to the upside.

    Google Inc (NASDAQ:GOOGL) has a bullish looking chart. Price broke out to a new all-time high Friday, accompanied by a good volume suggesting higher levels.The stock has been in a nice uptrend for the last two months and it looks very strong with both 50-day and 200-day exp moving averages going up while %K line is on top of %D line. Long setup.

    5 Gold and Silver Stocks Starting to Shine: SLW, AG, GG, ABX, KGC

    Precious metals and related mining stocks have been under a historic, soul-crushing selloff in recent weeks, as investors worry if the Federal Reserve — on rising odds of interest rate liftoff in December — is heading into a policy mistake with inflation still below target.

    Inflation just isn’t a clear and present threat: Producer price inflation is cratering, dropping at a 1.6 percent annual rate as of October on a persistent drop in food prices.

    On Monday, wholesale gasoline futures tested down to $1.20 a gallon — a level not seen since early 2009. Copper and crude oil are similarly weak. Other measures from China factory gate prices to U.S import prices all tell the same story.  (more)

    Could Gold Bottom In The Next 3 Days?

    On Friday as the markets were closing I received an email update from another widely followed newsletter writer who has been correctly, extremely negative on the entire commodity sector for a few years.

    In his update, he states that his cycle work indicates that gold will bottom on November 24-25.

    WOW, that is this coming Tuesday and Wednesday and precedes the Thanksgiving Holiday in the United States.  (more)

    US Weekly Economic Calendar

    time (et) report period ACTUAL forecast previous
    MONDAY, NOV. 23
    10 am Existing home sales Oct.   5.44 mln 5.55 mln
    TUESDAY,  NOV. 24
    8:30 am Advance trade in goods Oct.
    -- -$58.6 bln
    8:30 am GDP revision 3Q
    2.1% 1.5%
    9 am Case-Shiller home prices Sept.      
    10 am Consumer confidence Nov.   100.0 97.6
    8:30 am Weekly jobless claims Nov. 21   N/A N/A
    8:30 am Personal income Oct.   0.4% 0.1%
    8:30 am Consumer spending Oct.   0.2% 0.1%
    8:30 am Core inflation Oct.   -- 0.1%
    8:30 am Durable goods orders Oct.   1.8% -1.2%
    9 am FHFA home prices Sept.      
    10 am New home sales Oct.   510,000 468,000
    10 am Consumer sentiment Nov.   -- 93.1
      Thanksgiving Day
    None scheduled
    FRIDAY, NOV. 27
      None scheduled  

    Saturday, November 21, 2015

    Gold Stocks Buckle

    There is absolutely nothing good that can be said about the mining stocks at this point. Then again, there has been little good to say about these things for a long, long time.

    The month of October provided a bit of a glimmer of hope but the rally could not even make it to the 200 day moving average before failing. The secondary top near 140 lies between the 100 day and the 200 day moving averages and is now going to be a key technical level that will stand in the path of any recovery rally.
    Downside momentum remains strong at this point with no evidence of any concerted buying. (more)

    Is The Platinum Plunge Over?

    Investment demand for this precious “white metal” has declined by 380,000 ounces from the fourth quarter of 2014.   That figure is probably already outdated with the most recent plunge in prices. Investors’ appetite for this “precious metal” has hit new lows on the misery index. In addition, platinum prices are trading at a six-year low and the platinum: gold ratio is at its lowest point in two years.
    There are two main reasons behind the recent decline in platinum prices. One reason is weaker  industrial demand due to a stagnating global economy. The other reason is the recent downtrend in the price of gold which is pulling down the entire precious metals complex.
    However, there are a couple of reasons why the price of platinum may be close to a bottom. For example, above ground platinum stocks are expected to fall by 17% on a year to year basis in 2015.  Also, there is a possibility of a short covering rally. This is because gross speculative short positions in platinum recently hit at an all-time high, suggesting negative sentiment towards platinum is overdone
     Only technical analysis will help spot the bottom……so let’s go directly to the charts.

    Daily Platinum Futures

    Quarterly Platinum Futures

    The Baltic Dry Shipping Index Just Collapsed To An All-Time Record Low

    I was absolutely stunned to learn that the Baltic Dry Shipping Index had plummeted to a new all-time record low of 504 at one point on Thursday.  I have written a number of articles lately about the dramatic slowdown in global trade, but I didn’t realize that things had gotten quite this bad already.  Not even during the darkest moments of the last financial crisis did the Baltic Dry Shipping Index drop this low.  Something doesn’t seem to be adding up, because the mainstream media keeps telling us that the global economy is doing just fine.  In fact, the Federal Reserve is so confident in our “economic recovery” that they are getting ready to raise interest rates.  Of course the truth is that there is no “economic recovery” on the horizon.  In fact, as I wrote about yesterday, there are signs all around us that are indicating that we are heading directly into another major economic crisis.  This staggering decline of the Baltic Dry Shipping Index is just another confirmation of what is directly ahead of us.
    Overall, the Baltic Dry Index is down more than 60 percent over the past 12 months.  Global demand for shipping is absolutely collapsing, and yet very few “experts” seem alarmed by this.  If you are not familiar with the Baltic Dry Shipping Index, the following is a pretty good definition from Investopedia(more)

    Friday, November 20, 2015

    Valeant Pharmaceuticals Intl Inc (NYSE:VRX)

    Valeant Pharmaceuticals Intl Inc (NYSE:VRX) finished the day up 15.6% on solid volume of over 23 million of shares exchanging hands on the day. With no resistance between $87 and the 20-day EMA a break above the $87 level can see the stock trade in the $90 area pretty soon. Momentum indicators are slightly bullish now with RSI inching away above the 30% level. Have this on your watchlist.

    Zix Corporation (NASDAQ:ZIXI)

    Zix Corporation (NASDAQ:ZIXI) finally broke out to the upside on heavy volume today. Buyable on a pullback to the pivot.

    Fluor Corporation (NYSE: FLR)

    Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, and project management services worldwide. The company operates in five segments: Oil & Gas, Industrial & Infrastructure, Government, Global Services, and Power. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.
    Take a look at the 1-year chart of Fluor (NYSE: FLR) below with my added notations:

    FLR has formed a relatively clear up-channel chart pattern over the last 2 months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to channels, remember that any (3) points can start the channel, but a 4th point or more confirms it. You can see that FLR has 5 different points of channel resistance (red) or support (green).

    The Tale of the Tape: FLR has formed an up-channel. A long trade could be entered on a pullback down to the channel support, which currently sits near $47. Short opportunities would be on rallies up to channel resistance or on a break of channel support.

    Thursday, November 19, 2015

    Anavex Life Sciences Corp. (NASDAQ: AVXL)

    Anavex Life Sciences Corp. (NASDAQ:AVXL) stock today surged 66% or $2.16 to $5.40 per share at ten times average volumn of 3.39 million shares after the company announced that it was preparing regulatory filings for its Alzheimer's treatment. The daily technical chart shows possibillity of a new rally as the stock finally broke the downtrend line from the 14.84 high with volume expansion. Watch for continuation.

    AcelRx Pharmaceuticals Inc (NASDAQ: ACRX)

    AcelRx Pharmaceuticals, Inc., a specialty pharmaceutical company, develops and commercializes therapies for the treatment of acute pain. The company’s lead product candidate is Zalviso, an investigational, pre-programmed, non-invasive, handheld system that has completed Phase III clinical trials for the treatment of moderate-to-severe acute pain in the hospital setting. The company is also developing ARX-04, a sufentanil single-dose tablet, which has been planned to initiate Phase III clinical trials for the treatment of moderate-to-severe acute pain to be administered by a healthcare professional to a patient in settings of acute pain, such as in the emergency room, hospital floor, ambulatory care facilities, or on the battlefield.

    Take a look at the 1-year chart of AcelRx (NASDAQ: ACRX) below with my added notations:

    Since dropping suddenly in March, ACRX has been basically trading sideways ever since. During the sideways trend, the stock had created a clear level of resistance at $5 (green). A break above that $5 level should mean higher prices for the stock, and last week ACRX finally broke that resistance.

    The Tale of the Tape: ACRX broke through its key level of resistance at $5. A long trade could be entered on a pull back down to that level. However, a break back below $5 could negate the forecast for a higher move and would be an opportunity to get short the stock.

    Integrated Device Technology Inc (NASDAQ: IDTI)

    Integrated Device Technology Inc (NASDAQ:IDTI) Nice breakout. If the stock can break today’s high of $27.58, we should see a strong follow through move.

    Wednesday, November 18, 2015

    Micron Technology, Inc. (NASDAQ:MU)

    Micron Technology, Inc. (NASDAQ:MU) appears to be poised for a nice bounce off this bottom. In my view, the stock has formed a bottom in short-term and I expect a move past 15.93 to take the stock towards the target of 16.74 with stop-loss at 14.62. The stock seems to be undervalued at current levels.

    Gold Trades Below Support

    Just as the Euro is hanging by a thread above its chart support zone, so too is gold hanging by a thread above a critical chart support zone. The bottom of that zone is the July low near $1070 with the zone extending upward towards $1080.
    Gold drew a bit of support in today’s session ( Monday) out of safe haven buying tied to the horrific carnage in Paris but as is always the case with gold, rallies that come from geopolitical events, generally do not last long, especially when the underlying fundamentals for gold are as poor as they currently are.  (more)

    Ambarella Inc (NASDAQ: AMBA)

    Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD) video capture, sharing, and display worldwide. The company’s system-on-a-chip designs integrated HD video processing, image processing, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions enable the creation of video content for wearable sports cameras, automotive aftermarket cameras, professional and consumer Internet Protocol (IP) security cameras, telepresence cameras, and unmanned aerial vehicles in the camera market; and manage IP video traffic, broadcast encoding and transcoding, and IP video delivery applications in the infrastructure market.
    Take a look at the 1-year chart of Ambarella (NASDAQ: AMBA) with the added notations:

    AMBA started to trend higher back in December, and then the stock really took off in May. Since that time, though, the stock has fallen all the way back down to its $50 level. Over the past year, AMBA has found support at that same $50 support (green) on multiple occasions. Traders could expect some sort of bounce if the stock reaches that support again. However, if the $50 support were to break, lower prices should follow.

    The Tale of the Tape: AMBA has an important level of support at $50. A trader could enter a long position at $50 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

    YNDX: Time To Buy Yandex?

  • Edward Hill-Wood of Morgan Stanley commented in a note that the impact of worsening macro conditions in Russia is more than offset by a faster share shift of online advertising.
  • Hill-Wood noted that this trend benefits Yandex NV YNDX , a Russian-based search engine operator.
  • Hill-Wood upgraded shares of Yandex to Overweight from Equal-Weight, with a price target raised to $20 from a previous $18.
  • Russia's ongoing macro-economic woes have frightened some from investing in Russian-based companies However, Edward Hill-Wood of Morgan Stanley commented in a note that Russia is experiencing a shift of advertising online, proving an opportunity for Internet-based firms, like Yandex.
    "In a nutshell the structural shift of usage and advertising online is accelerating well ahead of market expectations," Hill-Wood wrote. "Russia is shifting from a laggard to one of the leading Internet markets globally in terms of user monetisation. This shift has been particularly rapid since 2Q 2015, perhaps aided by a change of behaviour caused by the economic recession."


    Hill-Wood offered several key points to support Yandex's growth profile:
    • 1. Yandex highlighted a stabilization in trends during its third-quarter conference call.
    • 2. Companies such as AliExpress, PayPal Holdings Inc PYPL  and Inc(ADR) JD  are all "growing strongly" in Russia. Meanwhile, a potential entry of, Inc. AMZN  and Netflix, Inc. NFLX  offers Yandex, the largest advertising business in Russia, new sources of advertising growth.
    • 3. The introduction of a new VCG auction has been "well executed" and could provide a new source of revenue upside for Yandix.
    • 4. Yandex.Market has seen benefits from internal restructuring and additional marketing.
    • 5. Yandex is seeing "greater traction" in non-core products, such as Taxi and, in addition to higher traction internationally in Turkey.
    Despite a clear path to growth, Hill-Wood noted Yandex is heavily impacted by a weaker ruble. However, Yandex's stock has "heavily" de-rated over the past two years and is now trading at 10.7x EBITDA versus a longer-term average of 13-15x.
    Shares of Yandex were upgraded to Overweight from Equal-Weight with a price target raised to $20 from a previous $18.

    Tuesday, November 17, 2015

    Exchange Income Corp. (EIF)

    Company Profile: Exchange Income Corporation engages in aviation services and equipment, and manufacturing businesses worldwide. It operates through two segments, Aviation and Manufacturing. The Aviation segment provides scheduled airline and charter service, and emergency medical services to communities located primarily in Manitoba, Ontario, Nunavut, and Alberta. This segment also supplies various after-market aircraft, engines, and component parts to regional airline operators.
    Trailing P/E: 21.75
    Forward P/E: 13.63
    EPS: 1.20
    Div. Yield: 7.15%
    Beta: -0.22
    PEG: 0.19
    P/S: 0.93
    P/B: 1.87
    Profit Margin: 2.80%
    Operating Margin: 10.47%
    ROA: 4.01%
    ROE: 0.57%
    Qtrly Earning Growth: 224.90%
    Current Ratio: 1.69%

    Recently broke out of a 24-month consolidation
    New 52-week high
    New all-time high
    Trading above the 50-week M/a
    Buying momentum is positive and rising
    Buying volume is increasing since August
    EIF has outperformed the S&P 500 since Q2
    Support is at $24

    The safety stop is at $23.50

    The target is $30

    Note: If EIF moves past the target, we suggest using a 3% trailing stop.

    Microsoft Corporation (NASDAQ:MSFT)

    Microsoft Corporation (NASDAQ:MSFT) bullish reversal candle on decent volume. The next buy point would be when it breaks over 55 on heavy volume, while immediate support has moved up to $52.85

    Antero Resources Corp (NYSE: AR)

    Antero Resources Corporation, an independent oil and natural gas company, acquires, explores, and develops natural gas, natural gas liquids, and oil properties in the United States. As of December 31, 2014, the company had 543,000 net acres of oil and gas properties located in the Appalachian Basin in West Virginia, Ohio, and Pennsylvania. It also owns and operates 153 miles of gas gathering pipelines in the Marcellus Shale; and 96 miles of low-pressure, high-pressure, and condensate pipelines in the Utica Shale. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was founded in 2002 and is headquartered in Denver, Colorado.
    Take a look at the 1-year chart of Antero (NYSE: AR) below with added notations:
    1-year chart of Antero (NYSE: AR)
    AR has been declining since May, but most recently the stock has been trading in a sideways move. While in that sideways move, the stock has formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern.
    AR’s rectangle pattern has formed a resistance a $27 (red), and a $20 support (green). At some point the stock will have to break one of the two levels.

    The Tale of the Tape: AR is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $20 or on a breakout above $27. The ideal short opportunity would be on a break below $20.

    Monday, November 16, 2015

    Lipocine Inc (NASDAQ:LPCN)

    Lipocine Inc (NASDAQ:LPCN) looks about ready to pop. The stock has finally recaptured and closed above the 50&100 day exponential moving averages. Plus, daily technical chart shows a Bullish MACD crossover and stochastics which indicate we have more room to the upside. If the stock price breaks and closes above the 13.80 level next week on heavy volume, then we will know the next major move up is likely.

    Valeant Pharmaceuticals Intl Inc (NYSE: $VRX)

    Valeant Pharmaceuticals Intl Inc (NYSE:VRX) Friday's price bar was a possible reversal bar. The stock made a new 52-week low during the session but closed the day with a nice gain of 2.22% , despite the market sell-off. This creates a bullish scenario for next week. Key daily technical indicators are displaying positive divergences and I think we could see a strong reversal over the coming sessions. Friday’s high of $76.30 is resistance for the next upside move. If the stock can break through this level, we should see a strong follow through move.

    Enerplus Corp (NYSE: ERF)

    Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in the United States and Canada. The company primarily has interests in approximately 162,000 net acres of lands comprising approximately 77,000 net acres targeting the Stacked Mannville zones and 85,000 net acres targeting the Duvernay formation in the Deep Basin region, Canada. As of December 31, 2014, it had proved plus probable gross reserves of 157,293 thousand barrels (Mbbls) of light and medium crude oil; 43,138 Mbbls of heavy crude oil; 12,798 Mbbls of natural gas liquids; 456,430 million cubic feet (MMcf) of natural gas; and 839,940 MMcf of shale gas.
    Take a look at the 1-year chart of Enerplus (NYSE: ERF) with the added notations:
    1-year chart of Enerplus (NYSE: ERF)
    ERF has been trading sideways on top of a $4.50 support (green) during the most recent three months. Now that the stock appears to be testing that support level again, traders should be able to expect some sort of bounce. However, if the $4.50 support were to break, lower prices should follow.

    The Tale of the Tape: ERF has a key level of support at $4.50. A trader could enter a long position at $4.50 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.