Analyst commentary. Includes: GILD, DIN, ZUMZ, WABC, UFPI, AKAO, ENS, GOLD, NLNK, and TOWR.
| Comments |
|---|
| AKAO Achaogen, Inc ($24.90) - Biomedics/Genetics - AKAO broke a triple top at $27 on Wednesday, the fifth consecutive buy signal on the chart confirming that demand is in control. This stock is trading in a positive trend and is an acceptable 4 for 5’er within the favored Biomedics/Genetics sector. Weekly momentum just flipped positive, suggesting the potential for further upside from here. Okay to buy or hold here as the technical picture is positive. The first sign of trouble comes with a move to $21, a double bottom sell signal. |
| DIN DineEquity, Inc. ($49.17) - Restaurants - DIN broke a double bottom at $49, the third consecutive sell signal on the chart. DIN is a 0 for 5’er within the Restaurants sector that is trading well below the bearish resistance line and is showing weakness relative to both the market and its peers. Additionally, this stock ranks dead last in the Restaurants sector RS matrix. Supply is in control. Avoid. The first level of resistance is at $57. |
| ENS EnerSys ($79.78) - Electronics - After forming, but not breaking, a double top at $84, ENS broke a double bottom at $80 and fell further to $79. This break sets the chart up for a potential shakeout pattern. From here, the action point would be triggered with a reversal up into X’s while a triple top break at $85 would complete the pattern. ENS is a strong 4 for 5’er within the Electronics sector. Okay to play the pattern on the reversal up into X’s or upon completion at $85. A move to $77 would negate the pattern as that is the level in which the bullish support line would be violated. |
| GILD Gilead Sciences, Inc. ($64.52) - Biomedics/Genetics - GILD broke a triple bottom at $65 on Wednesday, making the fourth consecutive sell signal on the chart as well as a new 52 week low. This stock is an unacceptable 0 for 5’er within the Biomedics/Genetics sector that currently ranks 71st out of 82 names in the sector RS matrix. Additionally, the bearish price objective is $61, suggesting the potential for further downside from here. Avoid as supply is in control and there is no further support left on the chart. Resistance is at $69. |
| GOLD Randgold Resources Limited (United Kingdom) ADR ($96.56) - Precious Metals - GOLD broke a double top at $95 and rallied to $97. This stock is a 3 for 5’er within the Precious Metals sector that recently saw its monthly momentum flip positive, suggesting the potential for further upside from here. Demand is in control. Okay to initiate new positions here as the weight of the evidence is positive. Support is at $85, the bullish support line. Note resistance at $106 and $126. |
| NLNK Newlink Genetics Corp ($16.18) - Biomedics/Genetics - NLNK broke a double bottom at $16. This move violated the bullish support line and therefore downticked this to a weak 2 for 5’er. The bearish price objective is $7, suggesting the potential for further downside. Additionally, this stock ranks 62nd out of 82 names in the Biomedics/Genetics sector RS matrix. Avoid as supply is in control. Further support is afforded at $15.50 and $14 while resistance is at $20. |
| TOWR Tower International Inc ($23.85) - Autos and Parts - TOWR broke a triple bottom at $24. This move broke through the bullish support line, flipping the trend negative and downticking this name to a 1 for 5’er within the Autos and Parts sector. Monthly momentum just flipped negative, adding to the negative technical picture. Year-to-date, this stock is down -13.23% compared to SPX, up 7.23% (through 5/16). Supply is in control. Avoid. There is further support at $21 and $19. Note resistance at $30. |
| UFPI Universal Forest Products, Inc. ($89.37) - Forest Prods/Paper - With the most recent market action, UFPI broke a double bottom at $87 and fell further to $85. This move completes a bearish catapult pattern on the chart. UFPI is trading in a negative trend and is showing near term weakness to both the market and its peers, making it an unacceptable 2 for 5’er within the Forest Prods/Paper sector. Supply is in control and the technical picture is negative. Avoid. Additional support is afforded at $84 and $77. |
| WABC Westamerica Bancorporation ($51.73) - Banks - WABC broke a double bottom at $52 on Wednesday. This move violated the bullish support line, flipping the trend negative and downticking this stock to an unacceptable 0 for 5’er within the Banks sector. Monthly momentum has been negative for two months, suggesting the potential for further downside from here. Additionally, this stock ranks 110 out of 118 names in the Banks sector RS matrix, making this one of the weaker names within this space. Avoid. There is further support at $47-$48. |
| ZUMZ Zumiez Inc. ($15.58) - Retailing - ZUMZ broke a double bottom at $15.50. This stock is trading in a negative trend and is a weak 1 for 5’er within the unfavored Retailing sector. Furthermore, this stock ranks 74th out of 89 in the Retailing sector RS matrix. Additionally, monthly momentum has been negative for three months, suggesting the potential for further downside from here. Avoid as supply is in control and the technical picture is negative. Note earnings are slated for 5/31/17. |
