DANG, AVNR, CRR, RNF - Stock Charts to Watch
It was another down day for the stock market on Wednesday. They are retesting, retracing, and after having a strong market for the first six months of this year, we’re paying the consequence for it. At the same time, there’s still a lot of stocks that are looking decent, although there are less of them. At this point, we’re going to take a look at both longs and shorts.
E-Commerce China Dangdang Inc. (DANG) had an interesting day on Wednesday. It ran up to a high of 7.42, closed at 7.21, up 45 cents, or 6.6%, on 6.1 million shares. Looking at the overall chart, the base was broken, it had a big thrust up, formed a wedge, and then popped and broke out again. This stock wants to go higher even in this market. There’s some resistance at 8.20-.25, and the next target is about a point higher.
Avanir Pharmaceuticals, Inc. (AVNR) had a big day on Wednesday, jumping 44 cents, or 13%, on 9 million shares. That’s the biggest volume in about 6 weeks. More importantly, though, is that it got right up to the prior high, and is right at resistance. The next target is 4 3/4, and then 5 3/4 going forward.
On the Short Side…
CARBO Ceramics Inc. (CRR) remains on our negative list, down another 1.04, or 2% on Wednesday. It finally broke away, snapped back for two days, and then broke down, going from 67.43 to 65.72. Look for a test at 61.
Rentech Nitrogen Partners, L.P. (RNF) had an ugly day on Wednesday. Going back, when it rolled over in February and formed a bear wedge, we put a short on it and said that when it spiked down to around 31, it was a successful swing trade. It made a nominal low, ran up to the declining-channel top, rolled over, formed a wedge, and now it’s come down again. Watch the level down around 29.90-30. If it takes that out, it could be going down to at least 27, maybe 25, quickly.
Other stocks on Harry’s Charts of the Day are Aegerion Pharmaceuticals, Inc. (AEGR), Trius Therapeutics, Inc. (TSRX), ITT Educational Services Inc. (ESI), Ambarella, Inc. (AMBA), and TearLab Corporation (TEAR).
Stocks on the short side include Agrium Inc. (AGU), Carnival Corporation (CCL), CH Robinson Worldwide Inc. (CHRW), MicroStrategy Inc. (MSTR), PennyMac Mortgage Investment Trust (PMT), Regal Beloit Corporation (RBC), Syngenta AG (SYT), and Vitamin Shoppe, Inc. (VSI).