AVL, MCP, RDY, VDSI Among Charts to Watch By Harry Boxer, www.TheTechTrader.com an AdviceTrade.com publication
It was an exceptional day for the bulls Tuesday as the market was still surging forward. The volume was light, the technicals were good, and lots of stocks were moving and breaking back out.
Avalon Rare Metals, Inc. Ordina (AVL) was among the rare-earth stocks that had a great day on Tuesday. It popped out of a 3-day flag with a thrust on volume, 9.36 million shares traded up 92 cents, or almost 13%. But the key to Tuesday's action was that the lateral price resistance was broken, and this stock appears to be on its way to retesting the high at about the 8.50-60 zone. If it gets through that, and it may do that on Wednesday, you could see a strong move that takes this stock up towards the lower teens around the 12-12 1/2 range. That would be my target for Avalon.
Molycorp, Inc. (MCP) had a big day on Tuesday. Lateral price resistance, which is key resistance for the last two months, was taken out with a thrust on 12 million shares, up 4.14, or 7.5%. At this point, it looks like a fait accompli to test the 62.80 range maybe as quickly as Wednesday. Stepping back and looking at the longer-term channel, it looks like this stock could be headed to the 80, maybe even 90, zone longer-term. But on a short-term basis I'm looking for 68-70 if it gets past the 62.80 range.
Dr. Reddy's Laboratories Ltd. (RDY) popped out on Tuesday across lateral price resistance, and completed a mini-base pattern, or head-and-shoulder type pattern. A move should take this to about 38 to test the little snapback high at the beginning of January. If it gets through 38-38.10, I would expect it to reach up into the 40-42 zone.
VASCO Data Security International Inc. (VDSI), which spiked up 2.19, or 18.5%, on 1.5 million shares, the heaviest volume in many years for this stock going back three years. At this point, with the spike up near long-term resistance, and this stock being overbought short-term, I would expect, potentially, this stock to back and fill, maybe form another complete pennant, or a flag, or something of that nature. But it should get through and spike quickly up to 16.
Other stocks in our Charts of the Day video are Allot Communications Ltd. (ALLT), Clean Energy Fuels Corp. (CLNE), Dendreon Corp. (DNDN), Interphase Corp. (INPH), Jazz Pharmaceuticals, Inc. (JAZZ), LogMeIn, Inc. (LOGM), NXP Semiconductors NV (NXPI), OmniVision Technologies Inc. (OVTI), Parker Drilling Co. (PKD), Rediff.com India Ltd. (REDF), Rare Element Resources Ltd. (REE), Smart Technologies Inc. (SMT), TranSwitch Corp. (TXCC), Unilife Corporation (UNIS).
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