Friday, July 17, 2015

Stocks To Watch: MU, AST, MCRB

Micron Technology, Inc. (NASDAQ:MU) I'm accumulating long positions again in the range of 19.25-19.50 levels for an immediate target of 21 levels. With the stock price showing signs of bounce back, I believe that a short covering rally a short covering rally may be near. Watching action closely up here.

Asterias Biotherapeutics Inc (NYSEMKT:AST) broke out of a rounding bottom pattern and the volume spiked along with strong move, sign that a new trend could be in play. The bullish break out of the neckline gives an upside target of 6.5 and higher. From the daily technical chart, MACD, RSI and KD both signal positive strength.

Seres Therapeutics Inc (NASDAQ:MCRB) showed a lot of strength again on Thursday. The stock has broken out above a consolidation pattern and looks to me like it wants to test the highs at 51.40. The intermediate consolidation formation and the subsequent breakout has opened up the next short-term upside. Long setup.

Chart of the Day - Receptos (RCPT)

The Chart of the Day belongs to Receptos (RCPT).  I found the biopharmaceutical stock by sorting today's All Time High list for the stocks with the highest Weighted Alpha then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 5/12 the stock gained 37.49%.
Receptos, Inc. is a biopharmaceutical company. It develops therapeutic for the treatment of immune and metabolic diseases. Receptos, Inc. is headquartered in San Diego, California.

technical indicators:
  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 8 new highs and up 31.32% in the last month
  • Relative Strength Index 75.56%
  • Barchart computes a technical support level at 192.71
  • Recently traded at 229.81 with a 50 day moving average of 174.71
Fundamental factors:
  • Market Cap $7.25 billion
  • Revenue expected to grow 272.20% this year and another 58.60% next year
  • Earnings estimated to decrease 9.70% this year an an additional 13.80% next year
  • In spite of the poor earnings projections the stock keeps rising and Wall Street analysts issued 2 strong buy and 4 buy recommendations on the stock
The 20-100 Day MACD Oscillator has been a reliable technical trading strategy for this stock

Seagate Technology (NASDAQ: STX) Stock is Due for a Double-Digit Pop

Technology has been one of the poorest performers this summer, and within the sector, data storage hardware stocks such as Seagate Technology (NASDAQ: STX) have fared even worse.

But from such a fire, a phoenix often rises. Seagate is one such bird.

Although we can credit fundamental news for Seagate's newfound strength, its technical change presents the most compelling story.

On July 13, the company warned fiscal fourth-quarter results would fall short of expectations due to weaker-than-expected demand. The stock promptly sank at the open to set a fresh 52-week low. (more)

Microsemi Corporation (NasdaqGS: MSCC)

Microsemi Corporation designs, manufactures, and markets analog and mixed-signal semiconductor solutions in the United States, Europe, and Asia. The company offers radio frequency (RF) and power components, analog and RF integrated circuits, system-on-chip solutions, field programmable gate arrays, application-specific integrated circuits, power management products, timing and synchronization devices and precise time solutions, chip scale atomic clocks, voice processing devices, discrete components, security technologies, and scalable anti-tamper products. It also provides subsystems and modules that include application-specific power modules, and power-over-ethernet and midspans. The company distributes its product directly, as well as through electronic component distributors and independent sales representatives.
Take a look at the 1-year chart of Microsemi (NASDAQ: MSCC) with the added notations:
MSCC may be forming a bearish chart pattern known as a double top. Double tops are reversal patterns and are as simple as they sound: Rallying up to a point (T), selling off to a support, and then rallying back up again to approximately the same top (T).
MSCC appears to have formed the double top price pattern (blue) over the last 4 months. As with any price pattern, a confirmation of the pattern is needed. MSCC would confirm its pattern by breaking the $32 support (green) that was created by the double top pattern.

The Tale of the Tape: MSCC has formed a potential double top. A short trade could be made on a break of the $32 level. Since there is no guarantee of a breakdown, a long trade could be made at $32 if a trader is willing to disregard the pattern.
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