Tuesday, July 14, 2015

Stocks To Watch: OHRP, KITE, VLTC, ATVI

OHR Pharmaceutical Inc (NASDAQ:OHRP) 67% real gains today, more to come this week based on the daily technical chart. The stock broke out into the gap area with Massive volume today and I expect a continuation of the move tomorrow. The MACD is curling up and the accumulation line is moving higher. Nice gap to fill. PS: Brean Capital analyst Jonathan Aschoff reiterated a Buy rating on the stock with a price target of $34. The technical chart above indicates that OHRP is ready for a huge bounce.

Kite Pharma Inc (NASDAQ:KITE) broke through that critical 66.50 level today on solid volume. The uptrend is intact and signals further bullishness on this stock. The stock hit a high of $69.99, which is resistance for Tuesday’s move. If the stock can break through resistance, we should see a follow through move. Watch the stock closely tomorrow.

Voltari Corp (NASDAQ:VLTC) ended Monday's trading session at 6.74, advancing 41% with the stock attracting 5.7 million shares. The stock shows signs of bottoming out with the recent up move from its 4-month low. The stock has also moved back from oversold zone and closed above all its EMAs for the first time since early June. There is a high probability for a trend continuation in the next sessions, as the stock could test the next key resistance level in the 7.50 area.

Activision Blizzard, Inc. (NASDAQ:ATVI) is again setting up for a potential swing trade. Breakout point at 26.09

Another Amazon AMZN Breakout to New Highs

While scanning the 41 stocks in the S&P 500 that are making fresh new 52-week highs right now, I wanted to highlight one stock in particular today.
Our good friend Amazon (AMZN) broke free above another sideways rectangle pattern in an ongoing uptrend.
Let’s pinpoint the breakout – on “Amazon Prime Day” – and see the current opportunity:

A quick glance at the Daily Chart shows us three recent “Sideways Rectangle” Price Patterns in an ongoing bullish trend.
Share prices broke – on a gap – two times in 2015 with strength as buyers dominated sellers.
After both breakouts, shares traded sideways into a Rectangle Pattern consolidation.
Price tends to impulse and then stall into a sideways range… but price eventually breaks free of sideways ranges into a future impulse move.
That’s likely what we’re seeing here with another breakout to new chart highs in the stock, and it creates an aggressive pro-trend breakout buying opportunity.
New traders tend to do better buying pullbacks – retracements – to support (like rising moving averages).
The risk of trading a breakout is that price forms a “Trap” where price initially breaks out… but then returns back inside the Rectangle.
That’s why we need to take our stop-losses that trigger if price does break initially but then return into the range.
Odds favor a retest of the Rectangle Support Low in the event of a trap triggering.
Nevertheless, continue following and trading “strong stocks getting stronger” in this ongoing bull market.

Trade of the Day: No. 1 Biotech Pick GILD Gilead on Sale

Gilead Sciences, Inc. (GILD) — I last covered GILD stock in the Trade of the Day on June 16. Since then, shares have fallen nearly 4%. Does the decline shake my confidence in this biotechnology giant? Absolutely not. GILD stock remains my No. 1 pick in the sector.
Capital IQ is confident that Gilead will maintain its dominant market position in the treatment of hepatitis C and continue to show significant sales growth despite competition. Its analysts put Gilead’s market share at 90% and believe it has only served an estimated 4% of the 6.6 million people with hepatitis C in the United States and some European countries. While competition is expected to increase, they note that Gilead’s Harvoni is physicians’ preferred treatment due to its ease of  (more)

Rite Aid Corporation (NYSE: RAD)

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products. It also offers health coaching, shared decision making tools, and health care analytics, including health coaching for medical decisions, chronic conditions, and wellness; population analytic solutions; and consulting services.
Take a look at the 1-year chart of Rite Aid (NYSE: RAD) below with my added notations:
RAD has been winding its way higher since its October bottom and along the way it has created a couple of levels to watch. First, the stock has formed a relatively clear resistance at $9 (red), which would also be a 52-week high breakout if RAD could manage to move above it. In addition, the stock is climbing a short term, up-trending support level (green) over the last 5 months. These two levels combined have RAD stuck within a common chart pattern known as an ascending triangle. Eventually, RAD will have to break one of those (2) levels.

The Tale of the Tape: RAD has an up trending support and a 52-week resistance level to watch. A long trade could be made on a pullback to the support, or on a break above $9. A break below the up trending support could be an opportunity to enter a short trade.