Tuesday, October 6, 2015

Stocks To Watch: $X, $RBCN, $VVUS, $AERI

United States Steel Corporation (NYSE:X) finally rebounded on heavy volume. This could be the start of a trend reversal for the stock, which is why I will be watching again the stock on Tuesday. Next resistance is $11.59, which was Monday’s high of the day. If the stock breaks through, there is a good chance you will see a strong upside move, so watch the stock very closely tomorrow. Plus, MACD triggered a bullish crossover.

Rubicon Technology, Inc. (NASDAQ:RBCN) might be close to squeezing some shorts based on the recent price action. The stock is on the verge of breaking out of a base formation and it could happen tomorrow. Once it breaks $1.08, jump in and watch RBCN take off. The stock is now trading significantly below cash and book value. With an improving RSI and a bullish stochastic crossover, I have a feeling that it will break higher shortly.

VIVUS, Inc. (NASDAQ:VVUS) daily chart is very promising. The stock coube be gaining momentum to break to the upside. Keep an eye for a possible breakout over $1.77

Aerie Pharmaceuticals Inc (NASDAQ:AERI) surged in the final hour of trading and closed back over the 200-day exponential moving average, which is very bullish for an upside move. Keep a close eye on AERI for Tuesday.

Canadian Dollars Are About To Explode Higher

Canadian Dollars have been one of my favorite shorts around the world for a long long time. We are talking about one of the most beautiful bases I’ve ever seen in my career. The old sayings are, “The bigger the base, the higher in space” and, “The bigger the top, the bigger the drop”. I learned these from technical legend Louise Yamada who told me she picked these up from Alan Shaw, retired technician and legend in his own right. In the case of Canadian Dollars, the big top took place between 2009-2013, while the huge base could be seen in USD/CAD but both had the same implications (see base here). All targets have been achieved and now I believe it’s time for a change in direction.  (more)

Allergan PLC (NYSE: AGN)

Allergan plc develops, manufactures, and distributes generic, branded, biosimilar, and over-the-counter (OTC) pharmaceutical products. It operates in three segments: North American Brands, North American Generics and International, and Anda Distribution. The North American Brands segment provides patented and off-patent trademarked pharmaceutical products primarily under the Dalvance, Bystolic, Canasa, Carafate, Daliresp, Fetzima, Linzess, Namenda, Namenda XR, Saphris, Teflaro, Viibryd, Actonel, Asacol HD, Atelvia, Delzicol, Doryx, Estrace Cream, Enablex, Lo Loestrin Fe, and Minastrin 24 Fe brands. The North American Generics and International segment develops, manufactures, and sells generic, branded generic, and OTC pharmaceutical products. The Anda Distribution segment distributes generic and brand pharmaceutical products primarily to independent pharmacies, pharmacy chains and buying groups, and physician’s offices.
Take a look at the 1-year chart of Allergen (NYSE: AGN) with the added notations:
1-year chart of Allergen (NYSE: AGN)
AGN rallied over 60 percent from its October low. After peaking at $340, the stock started a decline that now has the stock trading below its key level of $280 (blue). AGN is now undergoing a rally that will most likely bring the stock back up to that $280 level.

The Tale of the Tape: AGN broke a key level of support at $280. A trader could enter a short position on any rallies up to or near $280 with a stop placed above the level. If the stock were to break back above the $280 level, a long position might be entered instead.