ARST, LGL, MELA, RNN Among Our Charts to Watch
by Harry Boxer, www.TheTechTrader.com
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With the market headed lower we covered many of the shorts we recommended last night, so tonight I want to talk about some stocks that are holding up exceptionally well and look poised for further gains should the market bottom out and turn around.
ArcSight, Inc. (ARST) was an old favorite of ours last year when this stock ran from 8 up to 29. However, in the interim, the stock rolled over in April and May, reversed sharply with a price-volume surge and breakaway gap, and set up a nice- looking mini bull-flag on low volume. This set-up above the moving averages is what I call the Boxer Flag, the initial consolidation or pullback retest after the initial price-volume surge. Targets and resistance around 26 1/2, target at 29.
The LGL Group, Inc. (LGL) has been looking very good lately. It surged at the end of March, set up a coil, broke out and flagged, broke out and coiled again, and then broke out and is now flagging again. It peaked at resistance right at 14.20. Intermediate trend is very strong, and long-term trend shows a base, breakout, and a strong surge. A pullback should be used to add position of weakness.
MELA Sciences, Inc. (MELA) had a price-volume surge that took it up above its declining topsline and 50-day moving average a month ago, and then in the last three or four weeks it consolidated and coiled. Yesterday it had a breakaway gap, today it was up another 50 cents or 6% in a bad market, but looks like it may be headed back up towards the 11–12 zone, the intermediate trading target.
Rexahn Pharmaceuticals, Inc. (RNN) made a nice move today. It had a real strong move in March and April, backed off in a declining channel, popped five days ago, pulled back in a 2-day flag, and today it popped 34 cents or 24% on 4 3/4 million shares. An extension through resistance at around 1.75 could get it running back up to my target around the 31/2 area or double from where it is.
Other longs highlighted tonight are Cyberonics Inc. (CYBX), GlobalScape Inc. (GSB), Metropolitan Health Networks Inc. (MDF), Neurocrine Biosciences Inc. (NBIX).
