Stock Picks for 23 December 2016: ABEO, NMM, URRE

Only three stocks really tickled my fancy from today’s scan that I’ll be watching on 23 December: ABEO, NMM, and – for a little extra spice – URRE.

In keeping with my love of channel based trading, ABEO looks like it’s making a reversal that may both prove to be a confirmation of the channel itself and a good entry position. Entry price = 4.66, protective stop = 4.05.

NMM may be forming a steep upward channel inside its longer term channel, although this is a bit more risky of a play, as it could also break down to the lower main channel boundary. Entry = 1.57, protective stop = 1.40.

 

I put URRE into my watchlist for 23 December because it looks like it might be forming an upward channel that could prove very lucrative if it pans out. However, I’m always leery of entering positions after an overly tall candle prints (URRE gained 38% today), as there’s often a pullback, sometimes a big one. On the other hand, sometimes tall candles lead to major upswings. So, realizing that this is a very volatile/high risk play, adjust your position size (downward) accordingly. Entry = 1.44, protective stop = 1.05 (in case price rebounds off that downtrend line, then rebounds off the lower channel boundary for a third time).

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