4 Charts to Watch: 2 Bullish and 2 Bearish
Harry Boxer is watching four stocks, two breaking out: ABEO, NTNX, and two in bearish consolidations: HAS and PLAY. He’s the founder of TheTechTrader.com, a live trading room featuring his stock picks, technical market analysis, and live chart presentations.
Here are two stocks breaking out, and two others in bearish consolidations that are looking lower.
On the long side, Abeona Therapeutics Inc. (ABEO) broke through prior resistance at $18.90 on Tuesday and sailed up 14%, or $2.45, closing at $19.95 on heavy volume of 2.4 million shares traded. Worth noting: The technical angle of price as it has ascended shows that its trajectory up the chart has accelerated. That action, coupled with large volume on a breakout day, provides good reason to watch this stock closely. The gene therapy company has had an amazing run recently, enjoying positive market reactions to its August 22 earnings announcement, FDA news and clinical trials data. Next targets: $23 and $28.
Nutanix, Inc. (NTNX) soared on analyst enthusiasm, jumping $2.30, or nearly 10%, to close at $25.61 on huge volume of 15.5 million shares traded. The cloud OS stock broke out of a nearly 3-month consolidation formed in the $20-$25 zone. Having now closed above resistance formed at the September 22 high of $24.97, price may now be filling the significant gap created at earnings on March 3. Next targets are at $28 and $32.
On the short side, Hasbro, Inc. (HAS) lost 43 cents, closing at $96.19 on 644,100 shares traded Tuesday. After reaching an all-time high of $116.20 on July 21, price began falling with the entertainment company's 2Q earnings announcement and formed a bear wedge consolidation pattern in the $91.50-$100 zone that has not yet broken down. Next targets: mid-$80s and then high-$70s.
Dave & Buster's Entertainment, Inc. (PLAY) declined 72 cents and closed at $48.16 on 1.2 million shares traded. The stock reached an all-time high of $73.48 on June 8. Price broke below its last bear wedge on October 2 and has been consolidating over the last week around the $48 level to form another bear wedge. Price has not been this low since December of last year. The stock has lost 33% of its value since June and may probe the $40-42 zone in the near future.
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