As the market anticipates another Health Care Vote, POTUS is looking for layups that doesn't require vote on the house floor by lifting climate change policies which some "pundits" think won't even move the needle. As SPY bounced nicely off of 50 day Moving Average (MVA) two days ago, it's hinting that a lot rides on how campaign promises are delivered, most importantly the business tax cut that the markets are really looking forward to.
Trade Idea Recap from last week (March 25th 2017)
Let's look at some of the ideas we talked about last week first edition of downtrend reversal stocks which we thought were good candidates to trade in the short term.
MOH – Molina Healthcare Inc We said MOH was a good candidate to break the downtrend channel if it can break above $45 and Elasticity goes positive. Stock went as high as $46.91 and what we want to look for next is Elasticity to turn positive before taking on a position.
HURN – Huron Consulting Group Inc. : HURN is currently trending sideways which is what we want to see and it has made $1+ move since we noticed the stock. We still want to see Elasticity moving towards 0 before taking on a position.
HCLP – Hi-Crush Partners LP : We said $15 needs to break so it can go above the downward channel and it did that nicely. Stock has made a nice gain of $2 since Monday and is very likely to go to high $18 in the coming days if the momentum continues as Elasticity has turned positive. I didn't open any position on this yet.
Five ideas to consider for reversal
Here are some of the stocks that I'll be watching for a reversal in the next few days. Using BuySellShortCover's prospecting engine, I've created a scenario targeting actionable stocks that are trending downwards but starting to show signs of life for a comeback...
Once again, to learn more about how to use and apply proprietary gauges such as Berserker, Elasticity and Flux checkout our howitworks page. Now back to the ideas..
BRS – Bristow Group Inc
As BRS continue to reduce cost and improve liquidity stock made a nice run today and closed at high $14 and Elasticity almost flipped to positive. $15 is going to be very powerful resistance, If that breaks with higher volume we can see $18 in few weeks. Also note that every Elasticity reversal has produced a $5+ move so we're very keen to see if Elasticity turns positive and starts to base above 0.
ENDP – Endo International plc
Given the recent thumbs down from Food and Drug Administration (FDA) Advisory committee on the benefits of ENDP drug, stock has made a $10% move this week. $11.50 is going to be the battle zone short term. We're expecting $11.50 to break with Elasticity turning positive which can take us to $14 in a week or two. The saucer formation in Elasticity can generally produce a 5% - 10-% upside if it can turn positive (above 0) and stay there for few days. So we will be on the look out for that.
HZN – Horizon Global Corporation
As the shorts have mostly covered (short interest is at low 5%) $15 is going to be a strong resistance so we want to see a move up with an above average volume for continuation and a gap fill to $17 if this reversal could gain some momentum.
And here are few others from this scenario you can analyze in our platform. We encourage you to research each actionable idea further to understand the catalyst, story, and/or event behind them:
- MGNX – MacroGenics, Inc.
- CRC – California Resources Corporation
Alright, That's it for now folks. Happy and Profitable trading for the rest of the week.
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