Analyst commentary. Includes: PETS, AAP, CLB, TYLS, DRQ, HP, MGLN, PSMT, RCKT, and SAGE.
| Comments |
|---|
| AAP Advance Auto Parts, Inc. ($182.17) - Autos and Parts - Following a morning earnings report, AAP rose 10% intraday Tuesday, breaking a double top at $176 and reaching a new all-time high at $184. This 3 for 5'er ranks 2nd out of 54 names in the Autos and Parts sector RS matrix, and has been in a positive trend since January. The bullish price objective of $190 indicates the potential for further price appreciation. Those looking to add exposure may want to wait for a pullback as AAP is entering overbought territory. Initial support can be found at $168. |
| CLB Core Laboratories N.V. ($81.35) - Oil Service - CLB broke a spread triple bottom at $82, marking a new multi-year low. This 1 for 5'er moved to a negative trend in October and ranks in the bottom quintile of the Oil Service sector RS matrix. The bearish price objective of $76 indicates the potential for further price decline from here. Long exposure should be avoided. |
| DRQ Dril-Quip ($39.50) - Oil Service - DRQ completed a bearish catapult pattern on Tuesday at $40 just one day after down ticking to a 1 for 5’er. In October, this stock moved into a negative trend and experienced a flip to negative monthly momentum. The technical picture is weak. Avoid. |
| HP Helmerich & Payne, Inc. ($58.73) - Oil Service - HP broke a spread quadruple bottom at $60 and moved lower to $59. This stock is a weak 2 for 5’er within the Oil Service sector that moved into a negative trend in late October. Additionally, weekly momentum has been negative for four weeks, suggesting the potential for lower prices. Avoid. Note earnings are expected on 11/16. Final near-term support lies at $58, the July low. |
| MGLN Magellan Health Inc. ($57.83) - Healthcare - MGLN broke a double bottom at $61 and moved lower to $58 with Tuesday’s intraday action. This is the sixth consecutive sell signal for this 1 for 5’er within the unfavored Healthcare sector. In addition, MGLN ranks in the bottom decile of the sector RS matrix, confirming its weakness relative to its peers. Avoid as there is no remaining support on the chart. |
| PETS PetMed Express, Inc. ($27.05) - Retailing - PETS moved lower Tuesday to break a double bottom at $27, marking a new 52-week low. This 0 for 5'er moved to a negative trend in March and ranks in the bottom quartile of names in the Retailing sector RS matrix. Long positions should be avoided. Those looking for short ideas should note that PETS carries a 3.97% yield. Further support can be found at $19.50, the 2017 low, with overhead resistance coming in at $33. |
| PSMT PriceSmart, Inc. ($67.20) - Retailing - PSMT broke a triple bottom at $67 on Tuesday and is now trading at new 52 week lows. This recent sell signal marked the fourth consecutive on the chart, confirming that supply is in control. PSMT is a 0 for 5’er within the Retailing sector. Avoid. |
| RCKT Rocket Pharmaceuticals Inc. ($14.68) - Biomedics/Genetics - RCKT broke a double bottom at $15 on Tuesday, marking the third consecutive sell signal on the chart. This stock is a weak 2 for 5’er within the Biomedics/Genetics sector that moved into a negative trend in early October. In addition, monthly momentum has been negative for two months, suggesting the potential for lower prices. Avoid. Further support is offered at $14, the April low. |
| SAGE SAGE Therapeutics Inc. ($111.15) - Drugs - SAGE broke a double bottom at $118 and moved lower to $110 with Tuesday’s market action. This stock is a weak 1 for 5’er that is showing both long and near term weakness relative to the market. In addition, SAGE moved into a negative trend in mid-September and ranks 43rd out of 51 names in the sector RS matrix. Avoid. |
| TLYS Tilly's Inc ($16.63) - Retailing - TLYS broke a triple bottom at $16 and is now trading in a negative trend. This is the third consecutive sell signal for the 2 for 5’er within the Retailing sector. Supply is in control. Avoid. Further support is offered at $14.50. |
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