Short Plays That Deserve A Look Even Though Market Is At Oversold Levels
Posted by Stock Online Trader in Stock Picks, Technical Analysis on 03-10-2009
RGR started rallying in late Feb and has not looked back except for one negative day. Is this strong trend coming to an end ? Buying volume is seeing a dip and that could be early signs of reversal. Keep watching for potential short entry.
LFT took off after positive earnings. LFT has struggled to break and stay above $18.00 for the second time. This could provide some scalping on the short side. Once LFT breaks down, it has no strong support till $16.35. This should provide some decent short gains.
SWHC is in similar category as RGR. SWHC has doubled in value since early Feb. Today was an interesting day for SWHC. It took out the $4.50 resistance in the morning to go all the way till $4.80. However it couldnt hold on to its gain and dropped below the now $4.50 support, ending in negative territory. If it cannot take $4.50 tomorrow on the upside, SWHC can possibly drop all the way to $4.00 support. (Trade Idea: Short below $4.50 with stop loss on break of $4.50, with exit above $4.00 support)
ARST enjoyed a good earning spike. This rally continued into the 2nd day. However buying volume is slowing down and so is the price movement. This provides some scalping on the short side. If the $12.00 resistance fails to break again, ARST can provide nice drop. (Trade Idea: Short below $12.00 with stop loss on break of $12.00 above today’s high of $12.05)
ASX has popped from $1.60 to $2.20 in last 5 trading days. As depicted in the chart, next important resistance is the $2.42-$2.50 mark. If it cannot break above this level, we will see trend reversal.
GA is another stock up on earnings. GA popped nicely above the hard $7.00 resistance, ending the day at $7.03. If the pivotal support level of $7.00 holds, then this provides a potential long entry. However if it breaks below $7.00, then GA could make an ugly reversal.
BIG is another retailer spiking on earnings. However this has been a slow mover and faces stiff resistance at $18.25 and $19.00 levels. Today it reversed from the high of $18.84 to close $1.00 lower at $17.71. Keep watching if BIG makes another attempt at break past these 2 resistance levels.
REXX is an oil and gas play, that took off even on negative earnings news. Long term chart looks ugly and suggests it will keep going lower. However every now and then you can expect to see a pop. Today we got a 43% pop. How high can it go ? $2.00 will provide serious resistance and will be the pivotal price point to break. (Trade Idea: Short below $2.00 with stop loss on break of $2.00)
