Wednesday, September 23, 2015

Stocks To Watch: CDTI, DD, AEZS, GPRO

Strong breakout of resistance on volume confirmation. The heavy buying makes this an interesting situation and one worth watching on Wednesday. The technical chart shows the stock is in a short term bull market rally with MACD on top of signal line and %K line on top of %D line. This momentum could push this stock much higher from here. Next resistance is now seen around $2.50. VW scandal could benefit this company. CDTi's Chief Technology Officer will participate at the 6th Annual Global Congress of Catalysis 2015 (GCC-2015) being held September 24th to 26th in Xi'an, China.

E I Du Pont De Nemours And Co (NYSE:DD) looks like it may have found a bottom already. The daily technical indicators are looking better for the stock with MACD indicator above its sell signal line, %K line on top of %D line and RSI indicator moving up from the 30 level. A close above $49.51 will impart bullishness and will help the stock move to the $52 area.

AEterna Zentaris Inc. (NASDAQ:AEZS) I grabbed the pullback under 8c and took a long position. If it can holds this support area we might see another leg up.

GoPro Inc (NASDAQ:GPRO) MACD is showing signs of bottoming. Go long on the break of Tuesday’s high at 33.75.

A Second Chance to Buy China

If you missed the Chinese stock market rally last month, you now have another chance to profit...
Around four weeks ago, I told you why I was buying China. The Shanghai Stock Exchange Composite Index (the "SSEC") had fallen double digits and was sitting on a significant support line.
There was also "positive divergence" on the moving average convergence divergence (MACD) momentum indicator. In other words, as the index was falling to lower lows, the MACD indicator was making higher lows. So the SSEC looked poised to bounce. (more)

Whirlpool Corporation (NYSE: WHR)

Whirlpool Corporation manufactures and markets home appliances and related products worldwide. The company’s principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. It also produces hermetic compressors for refrigeration systems. The company markets and distributes its products under various brand names, such as Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Roper, Admiral, Affresh, Gladiator, Inglis, Estate, Acros, Supermatic, Consul, Brastemp, Indesit, Bauknecht, Ignis, Laden, Hotpoint, and Privileg. It sells its products to retailers, distributors, dealers, builders, and other manufacturers.
Take a look at the 1-year chart of Whirlpool (NYSE: WHR) with the added notations:
1-year chart of Whirlpool (NYSE: WHR)
WHR has been trending lower since the beginning of March. Over the most recent 3 months the stock has repeatedly found support around $160 (green). Now that the stock appears to be falling back down to that support level again, traders might be able to expect some sort of bounce. However, if the $160 support level breaks, lower prices should follow.

The Tale of the Tape: WHR has an important level of support at $160. Traders could enter a long position at $160 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

Hornbeck Offshore Services, Inc. (NYSE: HOS)

Hornbeck Offshore Services, Inc., through its subsidiaries, operates offshore supply vessels (OSVs) and multi-purpose support vessels (MPSVs) in the U.S. Gulf of Mexico, Latin America, and internationally. It provides marine transportation, subsea installation, and accommodation support services to exploration and production, oilfield service, offshore construction, and U.S. military customers. The company owns and operates a fleet of U.S.-flagged OSVs and MPSVs that support the deep-well, deepwater, and ultra-deepwater exploration, development, production, construction, installation, inspection, repair, maintenance, well-stimulation, and other enhanced oil recovery activities of the offshore oil and gas industry. It also operates a shore-base support facility located in Port Fourchon, Louisiana, as well as provides vessel management services, such as crewing, daily operational management, and maintenance activities for other vessels owners.
Take a look at the 1-year chart of Hornbeck (NYSE: HOS) below with my added notations:
1-year chart of Hornbeck (NYSE: HOS)
HOS has formed a key support level at $16 (green) over the past two months. In addition, the stock is declining against a short-term, down trending resistance level (red). These two levels combined had HOS stuck within a common chart pattern known as a descending triangle. Eventually, the stock will have to break one of those two levels.

The Tale of the Tape: HOS is sitting at its triangle support. A short trade could be made on a break of support or on a rally up to resistance. A long trade could be made at support or on a break through the triangle resistance.