The Virgin name can be found on a host of businesses, but the chart of Virgin America (VA) has our attention this morning with a saucer bottom on the chart below.
The above chart of VA shows a rising On-Balance-Volume (OBV) line from the July price low. VA is above the 50-day and 200-day moving averages. The slope of the 50-day average is positive/bullish and the slope of the 200-day is flat but could soon turn up.
We would look to go long VA on a $39 buy-stop using a $34 sell-stop.
Nov. 17, 2015 | 11:30 AM
Parsley Energy's Chart Shows Much Promise
- Traders could go long the shares on strength.
Parsley Energy (PE) has put in a nice base pattern and is poised to move higher.
This chart of PE, above, shows a bullish set up with PE over the rising 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line is steady and the Moving Average Convergence Divergence (MACD) oscillator is positive. Traders could go long with PE here on strength. A sell-stop below $18 should work to control risk and we have price targets for PE in the $25 to $26 area.
Nov. 17, 2015 | 10:30 AM
U.S. Staple GE Continues to Lead the Way
- Traders could consider adding to long positions at current levels.
General Electric (GE) has been in the Dow Industrial since day one. Sometimes it has shown leadership qualities and sometimes not. Last time we covered GE we had positive things to say and now we want to reinforce that.
In this chart of GE, above, we can see a bullish and strong On-Balance-Volume (OBV) line. Note the heavier level of trading volume so far in November. Also, you can see the bullish crossover of the 50-day and 200-day moving averages with both of these trend following measures rising.
The bottom line is GE is doing things right, on the chart at least, and traders could consider adding to long positions at current levels.
Nov. 17, 2015 | 9:45 AM
Calling on Callon Petroleum to Go Long
- Traders could consider going long CPE here and adding to longs on a close above $9.50.
Drilling down, we found the chart of Callon Petroleum (CPE) interesting with a bullish short-term and long-term picture.
In this short-term view of CPE, above, we can see that it made a low in late July. CPE has made higher lows with the same highs in the $9.00 to $9.50 area. Prices are above the 50-day and 200-day simple moving averages, and both averages are trending up.
This chart, above, shows CPE above the 40-week average and a strongly rising On-Balance-Volume (OBV) line with a positive Moving Average Convergence Divergence (MACD) oscillator.
This long-term chart of CPE, above, shows a seven-year base for CPE with a strongly rising OBV line. A breakout over $12 will complete the formation and signal what should be a significant markup.
Traders could consider going long CPE here and adding to longs on a close above $9.50. Use a sell-stop below $8.
Nov. 17, 2015 | 8:54 AM
Achillion Pharmaceuticals Has Potential 40% Upside
- We like the long side of ACHN.
It's not a household name with ads on television for its latest potential blockbuster drug, but Achillion Pharmaceuticals (ACHN) turned to the upside last month and looks attractive now from the long side.
In this first chart of ACHN, above, we can see a price improvement with the On-Balance-Volume (OBV) line turning up since early September -- a tell of accumulation. Prices have rallied above the 50-day simple moving average and the 200-day moving average. Also, the slope of the 50-day average is now positive. We can also see a bullish divergence in the August/September/October timeframe with weaker prices but rising momentum readings in the lower panel of the chart.
In this longer-term view of ACHN, above, we can see the recent gains to clear the 40-week moving average. The big rally in 2014 to become a "teenager" and the big correction this year gives us some perspective. With the Moving Average Convergence Divergence (MACD) oscillator moving to the zero line and a buy signal, we like the long side of ACHN.
Traders could go long ACHN right around $10 and use a stop close only order just below $9 as a risk point. Our upside price objective is $14.