Imperva (IMPV) is breaking out. Time to go long and add to existing longs.
Things are up and away in this chart of IMPV, above. We can see a yearlong uptrend, a rising On-Balance-Volume (OBV) line, bullish moving averages and a positive Moving Average Convergence Divergence (MACD) oscillator.
This longer-term chart, above, is also bullish for IMPV. Note the positive OBV line and the MACD oscillator about to give another bullish crossover. A new high of $76 could start a faster advance. Our optimistic upside target is the round number of $100.
Nov. 20, 2015 | 3:15 PM
Proofpoint Will Continue to Rise
- Our next point and figure price objective is $83.
Lots of good-looking charts still out there. Here's another one -- Proofpoint (PFPT).
PFPT has been in an uptrend all year, see above. The popular 50-day and 200-day moving averages are bullishly aligned. PFPT had a shallow and short-lived correction this summer. The On-Balance-Volume (OBV) line has been going up since May, confirming the rally. The momentum study is not signaling concerns with any bearish divergences.
We can see another bullish alignment in this chart, above. Prices are rising and have moved above the up-sloping 40-week moving average. The Moving Average Convergence Divergence (MACD) oscillator has given a new buy signal. Prices are lower today, and we would consider that a buying opportunity. Risk 8% from entry. Our next point and figure price objective is $83.
Nov. 20, 2015 | 2:45 PM
Buy Into EXCO as a Low-Priced Play
- For now, this is not a long-term idea.
I don't normally troll for ideas in single-digit names, but I made an exception for EXCO Resources (XCO) because I saw a report of insider buying. Insider buying in the open market is one of the better long-term bottom indicators.
In this chart of XCO, above, we can see that the On-Balance-Volume line turned up in August and prices have rallied above the 20-day and 50-day moving averages. No need to look at a longer-term chart as this is a speculative play. Either XCO rallies from here or not. A small pop can be a big percentage move. For now, this is not a long-term idea.
Nov. 20, 2015 | 1:15 PM
Valeant Pharmaceuticals Could Make A Valiant Comeback
- There is a nice bullish divergence between the lower prices and the improving momentum picture.
Valeant Pharmaceuticals (VRX) has received international attention from investors north and south of the border: It has had one of the more dramatic declines I can remember, taking many year-end bonuses with it.
As you look at this chart of VRX, above, keep in mind that the short interest on VRX rose to 11,406,300 shares from 10,537,200. In this chart of VRX, we used the shorter, 20-day Simple Moving Average: VRX is poised to test and/or break that average. The On-Balance-Volume (OBV) line is rising, as is the Moving Average Convergence Divergence (MACD) oscillator. There is a nice bullish divergence between the lower prices and the improving momentum picture. I am not saying to buy this name, but I am saying that it looks like all the bad news is now priced into VRX, and the recent shorts could be forced to cover those positions.
Nov. 20, 2015 | 12:38 PM
Raise Your Sell-Stop on Nike, Just Do It!
- Looking at recent price action, we would suggest increasing sell-stops to $125.
In late September we wrote a bullish story on Nike (NKE), giving a $150 price target. Shares of NKE gapped higher, this morning, and are poised to soon make a new, 52-week high. This is the kind of price action where we think it is appropriate to raise your sell-stop.
This chart of NKE, above, shows the stock in good shape -- rising above the rising 50-day and 200-day moving averages. The Moving Average Convergence Divergence (MACD) oscillator is poised to generate a new buy signal, too. Looking at the recent price action, we would suggest raising sell-stops to $125. Never forgot your defense, especially when everyone else is thinking offense.