Chronicle Journal: Finance

Some potential bounce plays to keep an eye on

 

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I think Tesla, Inc. (NASDAQ:TSLA) will have a relief rally next week after its dramatic fall since the January peak of $900. The RSI history of this stock speaks louder. Notice that everytime the daily RSI drops below the 30% level, the stock makes a dramatic rise in the weeks after. The performance history of a stock is always an important parameter in my technical analysis. Nowadays, a lot of traders sell any stock when the daily RSI touches 70 and buy when it falls to 30, however, you must analyze the RSI history before making any trade. History does tend to repeat itself and the majority of the stocks have more than one life in them. Another interesting factor on this long-term chart is that the uptrend of the accumulation line remains practically intact after this big drop, which means the stock is still on the positive swing. These are few reasons why I think now is the time to take a long position at this one, before the stock changes its trend and heads back higher. The bottom looks to be in and the risk of more bloodshed is a lot lower than it was weeks days ago. Lets see if I am right again. NOTE: I took a significant long position on Tesla last week. I won't share my stop loss to avoid algorithms reading it.
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Applied UV Inc (NASDAQ:AUVI) with such a great trading day and news, this stock should be closely watched next week. I think there is a good chance for further gains as this stock went from much lower prices, 5 to $35.78 just last month. Could we see that type of rally again? That is the best thing about this market, anything is possible. Yesterday, SteriLumen tweeted that the LEDs in their devices have been proven to kill Coronavirus in seconds. Thats a remarkable argument in pandemic times, which could easily boost its sales. From a technical standpoint, the stock has been consolidating within a falling wedge pattern on H2 that has bullish implications. A breakout is needed to end this large consolidation and resume the uptrend. At this point I'm inclined to mark a key resistance zone around 9.5- 9.75. A move above this area, would break the upper trendline and the resistance zone. If a breakout occurs, we could see an acceleration of the bullish momentum and move toward the 13.75-15 area. Technical indicators are looking bullish, MACD and RSI are showing upward momentum. Now add the bottom play factor along with Yesterday's positive tweet and the potential upwards move gets a little more believable. I doubled my long position before the close.
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OLB Group Inc (NASDAQ:OLB) a great trading session and the late last minute buying spree bodes well for next week. Last week the company issued two press releases that were not seriously taken in consideration due to the market behavior. If the market stabilizes next week at these levels and the growth uncertainty reduces, small-caps may outperform and this one could easily run to +$8 again. A break of the $6.54 level could bring $8 and then $8.80 quickly into focus.
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Churchill Capital Corp IV  (NASDAQ:CCIV) appears to have bottomed and I think it will turn higher in the short term. Keep a close eye on the stock, as it could break out from here. Breakout watch over 24.98
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A quick look at GRNQ's chart will show a stock that has been on the downfall for the last three weeks. Yesterday, the stock held nicely its rising EMA200 meaning we could be seeing at least a temporary bottom. I wouldn't be surprised if this stock popped 15-20% in one session soon.
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This spec Oil name New Concept Energy, Inc. (NYSEAMERICAN:GBR) hit a new one-month low yesterday and started to bounce off of them. This should continue next week and we could see a very sharp recovery. GBR was a high flyer later in January. Currently is a good stock to trade, not for investment.
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I do believe Camber Energy Inc (NYSEAMERICAN:CEI) will bounce and with continued positive crude Oil news that bounce will turn into a significant trend higher. Add this merger/spec Oil name to your watchlist, this is a knife worth catching.
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I think it's fair to say at this stage FSD Pharma Inc (NASDAQ:HUGE) is way undervalued and that the selling has gone far beyond reason. I think a $1.80 break would be very bullish for this stock for a quick run to 2.40
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Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.

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AC
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