Weekend Chart Commentary: BMY, GIGA, IMGN, MNGA, PDLI, RAVE, SGMO, WOR

The first set of charts in this post are stocks from my AIM watch list that are on my radar for potential entry as we near the end of the month. I’ll post an updated set of charts on the 31st.

GIGA (Giga-Tronics, Inc.)

GIGA looks like it’s going to close with the monthly RSI(5) coming up from a very nice overbought period while the stock was in a downtrend. This is another stock that AIM can really take advantage of, with tremendous high/low swings. If the RSI(5) holds above 30, I’ll enter near the close on 31 January with a 50% position (i.e., 50% of my allocated money going into purchasing stock, with the other 50% held in reserve).

IMGN (ImmunoGen, Inc.)

I took a position in this stock on 3 January, but if I hadn’t, I’d be looking at entering at the end of the month as long as the RSI(5) closes above 30.

MNGA (MagneGas Corp.)

MNGA is a stock I only recently added to my watchlist, but it looks like it has lots of potential for some juicy volatility and is just swinging up from oversold and – hopefully – out of a downtrend. I’ll be looking for potential entry on the 31st if the RSI(5) holds above 30.

PDLI (PDL BioPharma, Inc.)

After getting smashed to its previous multiyear lows, it looks like PDLI may be ready to make a turnaround. This isn’t what I’d consider an optimal AIM stock, as it’s been through some extended up/down trends. However, it’s also demonstrated a lot of volatility in the past and is at a bargain basement price with lots of potential upside, so I’m putting it on my shopping list for the end of the month.

RAVE (Rave Restaurant Group, Inc.)

RAVE is another stock that’s taken a horrific beating but looks like it’s finally making a reversal to the upside. The stock has a good history of high volatility month to month, and I also like it because it’s outside of the biotech and mining sectors, which are big on volatility but limit sector differentiation. Another one on my month’s-end shopping list.

SGMO (Sangamo Therapeutics, Inc.)

SGMO is another AIM poster child. I already took a position on this on 29 December, but if I hadn’t, I’d be looking to enter a 50% position at the end of this month as the RSI(5) closes over 30.

The following charts are just a couple that cropped up that I thought I’d pass on (not AIM related).

BMY (Bristol Myers Squibb Co.)

I don’t have a position in BMY and it’s not on my AIM watchlist, but it caught my eye as one of the trending tickers on Stocktwits and I happened to take a peek at it. BMY has clearly taken a beating, but I suspect the pounding is far from over. Looking at the monthly chart, below, BMY looks like it’s in a very long term channel. My guess would be that it’s going to drop to at least $35 – the lower sub-channel mid line – where it will probably have another rally or consolidation, then continue on toward the lower channel boundary and $20-ish. If you’re an AIM investor, I’d hold off on entering until around $35 to start accumulating.

WOR (Worthington Industries, Inc.)

This is another stock I don’t have a position in and isn’t on my watchlist, but one of the folks on Stocktwits asked me to take a look at it and I thought I’d share my two bits with you. Price looks like it’s rebounding nicely from the support zone in the $45.50-46 zone, with a nice gap fill opportunity up to $54.90. This isn’t a stock I’d dive into with an AIM strategy, but it’s looking good for a swing. I’d enter at $47.61 with a protective stop at $45.08. I’d take some profit once it hits the gap fill, the add a trailing 7 period 2ATR stop.

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