KWK, IDCC, CMG, URI - Stock Charts to Watch
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It was quite a volatile day on Wall Street on Wednesday, and after the FOMC spoke the indices rolled over hard. Since, the market's down, we will be looking at more shorts here than longs for a change, however, we will begin with the longs, as usual.
Quicksilver Resources Inc. (KWK) has a head-and-shoulder-type pattern, and it got up to the top of it on Wednesday, closing very well, up 1.43 to 5.95, or 31.64%, on 10.1 million shares. It reached as high as 13.49 at one point in the day. The declining topsline was taken out, and lateral price resistance is at 6 1/4, which may be tested as early as Thursday. The short-term target is set at 7 1/2.
InterDigital, Inc. (IDCC) had a major spike up after they won a court ruling in a patent fight with Nokia. IDCC has been in a one-year down channel, going from the mid 80’s all the way down to the low 20’s. It popped in June, and then it had a nice 4 or 5-week sliding consolidation, and a retest. It started moving up, and on Wednesday, it popped again, up 3.88 to 31.18, or 14.21%, on 5.1 million shares. If it gets through Wednesday’s high at 34.10, it may very well be on its way up toward the 40 zone.
Stocks on the Short Side…
Chipotle Mexican Grill, Inc. (CMG) seems to be falling apart. Once, one of our favorites, it’s now working its way down from its 440.40 high in mid-April to Wednesday’s close at 280.67. It was down a whopping 11.66, or nearly 4%, on 777 thousand shares. Volumes down as well. Analysts on Wall Street were expecting Chipotle revenue to increase to $706 million, but it turned in just $691 million. It has gone up, pulled back, bounced, rolled over, consolidated, gone back up again only to roll over again. At one point, it got back up to 419, before rolling over. It has dropped 37 points just in the last couple weeks, and it’s still falling. There’s major support at the 280.67 zone, and if it falls there, it could get down into the 325 zone pretty quickly.
United Rentals, Inc. (URI) is still in a lousy-looking down channel. It broke down in mid-April, snapped back to resistance, broke to lower lows, then to lower highs, formed a large wedge that was broken on a big down day, snapped back, went to lower lows, and then had another couple-days snapback, and rolled over again. On Wednesday, it dropped 1.13 to 27.78, or 3.9%, on large volume. It looks like it will get down to 24-25 short-term, and ultimately, it will get down to 20.
Other stocks in our Charts for the Day are Frontier Communications Corporation (FTR), Dominion Resources, Inc. (D), Hudson Technologies Inc. (HDSN), NCR Corp. (NCR), REEDS, Inc. (REED).
Stocks on the short side include Abercrombie & Fitch Co. (ANF), American Public Education, Inc. (APEI), CEVA Inc. (CEVA), The Cooper Companies Inc. (COO), Deckers Outdoor Corp. (DECK), Joy Global, Inc. (JOY), Nucor Corporation (NUE), Red Robin Gourmet Burgers Inc. (RRGB), and Weight Watchers International, Inc. (WTW).