Stock Picks For 4 January 2017: ARRY, HOV, NVAX, WSTL

These picks are going to be a bit – well, a lot – different than the previous ones I’ve made (I’ll explain what’s different and why in a later post). You’ll note that I’m not going to suggest entry/stop points from now on; again, I’ll explain why a bit later. Oh, and I’m trying out charts from Stockcharts.com rather than those from TradingView.com, just for grins. Let me know if you have a preference. In the meantime, hold onto your hats: here we go!

ARRY (Array Bipharma, Inc.)

First up is ARRY. This is a stock on my long-term watch list, but isn’t one I’d personally put money into right now because share prices aren’t at bargain prices (i.e., oversold). If you’re a breakout trader, however, this one may be for you. As you can see from the monthly chart, below, ARRY just broke out over resistance at around $9.00 and is likely heading higher. Taking a look at the daily chart…

…you can see how ARRY was trading in a very tight range for a number of days before making a nice move out of the range today. This is a very bullish move that I think could potentially – over time – take the price to $15 or higher.

HOV (Hovnanian Enterprises, Inc.)

The next chart is for HOV, which made a nice reversal in November. Again, this stock is on my long term watch list, but isn’t in the bargain bin. However, it’s looking very bullish on the monthly chart. On the daily chart…

…you can see what looks like a reversal from a hammer candle after a nice retracement. The CCI is still in the bullish range, while the Stochastic RSI is turning up nicely.

NVAX (Novavax, Inc.)

I opened a position in NVAX at $1.30 yesterday on 3 January. As you can see from the chart below, NVAX has been pounded into the ground…where it has been a number of times before. The upside to the $8.00 zone (which you can easily see is a very solid resistance zone) is roughly 500%. You con’t get there tomorrow, but this company has repeatedly demonstrated that it can recover from a Rocky Balboa style hammering. It may not have hit bottom yet, but if it continues downward I’ll add more shares to my position, then start selling them on the way back up. Buy low, sell high! On the daily chart…

…you can see that the Stochastic RSI and CCI20 are turning up, indicating at least a short term bullish move, which is also supported by…

…the daily renko chart below, which indicates not just the double bottom that you can eyeball on the daily chart above, but a triple bottom (after that plummeting bobsled ride from hell). Sure, that and $5 will get you a coffee at Starbucks, but for what it’s worth:

WSTL (Westell Technologies, Inc.)

The last chart for today is WSTL, which is making a gradual climb out of the bargain basement bin on the monthly chart:

On the daily, WSTL is not overly exciting on the surface, but to me it looks like price is forming a large cup that’s gradually heading back toward the $1.00+ range, which could be a gain of well over 55%.

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