Monday, July 6, 2015

Stocks To Watch: KITE, ZIOP, TWTR, EBAY

Kite Pharma Inc (NASDAQ:KITE) on my swing long list. The stock finally closed the week above the downtrend line that had been in place since January. Good upside volume on the daily chart. Breakout above 66.50 is expected to trigger fresh uptrend and immediate resistance at 77.

ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) continued its sideways movement this week and tested the bottom of 11.10 levels again. Now, on the downside 11 is immediate support zone for next week. The daily technical indicators are displaying negative divergence, indicating that the medium-term trend is under threat. The current uptrend will continue until the stock is trading above trend reversal level of 10.74.

Twitter Inc (NYSE:TWTR) looks to be setting up for an upside move, as the price has held up well the past few sessions.I remain short-term bullish but I hesitate to suggest new positions with the market looking vulnerable. At this point, and given the current stock levels, it is important for it to break 36.42 level soon. The trend is expected to be up till trend reversal level of 35 is intact on closing basis. Plus, the stock closed the week above its 9 & 13 exp moving averages, giving it even a more bullish set up.

eBay Inc (NASDAQ:EBAY) Rally continued for 3rd consecutive session. The stock is showing signs of an upcoming breakout as price action and volume are making some bull signals. Waiting for a break above the 62.39 for a long position. Short-term price target after the break is 63.30.

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Sanderson Farms, Inc. (NASDAQ: SAFM)

Sanderson Farms, Inc., an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. The company sells ice pack, chill pack, bulk pack, and frozen chicken in whole, cut-up, and boneless form primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern, and western United States, as well as to customers who resell frozen chicken in the export markets. Its prepared chicken product line includes institutional and consumer packaged partially cooked or marinated chicken items for distributors and food service establishments.
Take a look at the 1-year chart of Sanderson (NASDAQ: SAFM) below with my added notations:
1-year chart of Sanderson (NASDAQ: SAFM)
SAMF had formed a key support level at $75.00 (green) over the past 5 months. In addition, the stock is declining against a short-term, down trending resistance level (red). These two levels combined had SAFM stuck within a common chart pattern known as a descending triangle. Eventually, the stock had to break one of those two levels, and yesterday SAFM broke through the support.

The Tale of the Tape: SAFM broke its $75.00 triangle support. A short trade could be made at or near $75.00. A break back above the prior support could be an opportunity to enter a long trade.
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Baker Hughes (NYSE: BHI) Could Plunge in the Next Few Weeks

It takes a lot to turn a bear market around, but for oil services stocks it seemed that the requirements for such a move were starting to gel in May.
The PHLX Oil Service Sector Index (OSX) had just made a tentative breakout from a bottoming pattern that was a cross between a double-bottom and an inverted head-and-shoulders. It even moved above its 50-day moving average, which itself was rising.
Paradoxically, OSX ran out of fuel shortly thereafter. Momentum dried up and money started to flow back out of the sector once again. It took a while, but its slow fade finally negated any form of a breakout in early June by dipping back under its 50-day moving average and former breakout levels.  (more)

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US Weekly Economic Calendar

time (et) report period ACTUAL CONSENSUS
10 am ISM nonmanufacturing June   55.0% 55.7%
8:30 am Trade deficit May   -$42.1 bln -$40.9 bln
10 am Job openings May   -- 5.4 mln
3 pm Consumer credit May   -- $21 bln
2 pm FOMC minutes        
8:30 am Weekly jobless claims July 4
10 am Wholesale inventories May
-- 0.4%
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