Wednesday, December 9, 2015

Canadian Stocks Plunge To 2-Year Lows

Canadian stocks are down 15% from their highs in 2008 (and down 18% from the 2014 highs) as the blowback from a collapsing energy market ripples across the entire "not unequivocally good" economy. However, perhaps more worrying is the 2008-esque dynamic playing out almost perfectly for America's northern neighbor...
Canadian stocks are at a 2-year closing low...

Deja vu, eh?

Rovi Corporation (NASDAQ: ROVI)

Rovi Corporation provides integrated solutions for the discovery and personalization of digital entertainment to service providers and consumer electronics (CE) industry worldwide. The company offers interactive program guides (IPGs), an interactive listing of television or video program information that enables viewers to navigate through, sort, select, and schedule video programming for viewing and recording. It markets IPGs to service providers under i-Guide and Passport brands; and CE industry under the G-GUIDE and HTML Guide brands.
Take a look at the 1-year chart of ROVI (NASDAQ: ROVI) below with my added notations:
1-year chart of ROVI (NASDAQ: ROVI)
ROVI has been in a downtrend for most of 2015. However, over the past 4 months the stock has created an important resistance level to watch at $12 (red). As you can see on the chart above, ROVI has tested that level several times as resistance, while also testing it as support back in July. A break above that $12 level should lead to higher prices for the stock.

The Tale of the Tape: ROVI has a key level of resistance at $12. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $12.

Clovis Oncology Inc (NASDAQ:CLVS)

Clovis Oncology Inc (NASDAQ:CLVS) A possible cup & handle bottom pattern may be forming on the daily charts. The technical chart shows bullish sign with MACD fast line line on top of MACD slow line and RSI rising. The neckline is located at the $35.76 level so a break above this resistance area could be enough to confirm a new uptrend. There could be good upside in CLVS so watch the stock closely.