The battle over Herbalife between Ackman and Icahn continues. Here is an updated chart of HLF, showing key support and resistance levels. Green arrows represent what I believe to be places where hedge funds are buying shares. Look for a break of the downsloping support trendline and a small sized short squeeze to the [...]
After a 3-month short squeeze and bogus restructuring news releases, Sears Holdings (SHLD) is once again showing weakness. With major players Walmart, Target and Amazon.com showing strong sales, Sears and Best Buy have been getting clobbered.
Exco Resources (XCO) has formed a small inverse head & shoulders pattern with an $8.00 neckline. Although the company is mismanaged, a high short position 27% makes it a prime candidate for a short squeeze. The recent bounce in natural gas prices could provide the backdrop for a 10-20% move higher. Watch XCO as it approaches the $8.00 resistance neckline.
Today’s chart scan highlights China Armco Metals (CNAM) Sodastream (SODA) and Acxiom (ACXM). Low float stock CNAM is speculative by nature, but the chart shows some interesting volume spikes in the last 5 months. With a float of just 8 million shares and market cap of 10 million CNAM could see a major spike very soon.
Acxiom (NASD: ACXM) ATP Oil & Gas (NASD: ATPG) Talisman Energy (NYSE: TLM) Sonus Networks (NASD: SONS) are highlighted on our most recent chart scan. Acxiom has arguably the most tradable chart above with a $14.25 neckline. Sonus Networks and ATP oil and gas each have earnings announcements this month. They could see run ups heading into earnings release dates.
Priceline (NASD: PCLN) Magic Software (NYSE: MGIC) Motorola Solutions (NYSE: MSI) and Micros Systems (NASD: MCRS) came up on our scans as a result of ascending triangle formations. In particular Priceline (PCLN) which broke above its $550.00 neckline resistance level. Any pullback towards the midpoint represents a possible re-entry point ahead of earnings announcements at the end of the month.
Shutterfly the provider of online photo printing services posted better than expected earnings and rallied 8% today. This move put it over the $26.00 resistance neckline and the 50 day moving average. With 20% of the float short we could see a move over $30.00 in coming weeks. With a stop at $24.50 we have limited downside on this trade.
After 5 months of consolidation Hudson City Bancorp is attempting a break above $6.25 resistance. We took a long position at $6.17 and have set our stop limit at $5.89 if the market shows weakness. Hudson City is set to release earnings January 16th and could see a small move higher into that announcement.
A 3-year chart of Idenix Pharmaceuticals shows a clear breakout above $5.50. The biotech company focuses on the discovery of drugs for the treatment of viral diseases. With 7.50% of the float held short and solid looking chart Idenix should squeeze higher.
Houston American Energy (HUSA) is a small cap energy exploration and development company focused on natural gas and oil properties in southwest United States. Despite its position in a favorable sector Houston American Energy has been the target of short sellers. With nearly 30% of the 16-million share float held short, HUSA has a huge crowd betting against it.