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4 Stocks to Trade This Week - views
MILWAUKEE (Stockpickr) -- With thousands of stocks to choose from and limited computer screen space, finding the rights ones at the right time can be difficult. That’s why the best traders are the most prepared traders. As a trader, it’s important to be active even after the closing bell, scanning the market and looking for trading ideas for the next day.
With that in mind, here are a few stocks that have caught my attention.
Caesars Entertainment (CZR) as you can see by the daily chart, has been bouncing around the past week from $14.40 to $15.20 after a steady decline. While it seems to have bottomed out, that doesn’t necessarily mean it has. Ideally I want to see it break out of here and form a cup and handle formation like it did when it went from $14 to $12 in mid-February before rising back up.
In order for me to believe the stock wants to go back up to $18, I want to see an increase in volume from current levels, which will tell me there are buyers becoming interested in the stock again. Be aware that this is also playable to the downside; a break below $14 may have traders looking to short.
Atlantic Power (AT) is one of those stocks that gapped down and got dropped hard. As a technical trader, I couldn't care less about the reasoning. I’m looking to trade it, not invest in it.
The stock hit a high of $5.25 Friday, a level it hit before in late March and failed to move past. The stock closed Friday at $5.05, but I like the increase in volume that occurred. The increase in volume indicates a possible increase in buyers and attention in the stock. Ideally for next week, I want to see daily volume pass Fridays and the stock break resistance at $5.25. With a break of $5.25 and close above it, I think AT could start trending back up to $7.50 where it gapped down to.
Revolution Lighting Technologies
Revolution Lighting Technologies (RVLT) has been climbing upwards since late January. As you can see from the chart, it spiked and hit a high of $2.50 before coming back down and consolidating for a while. During the consolidation, it has held up nicely from the $1.80 area. RVLT looks to have broken out of consolidation last week and ready to test the $2.50 high again. $2.30 was the high from Thursday and is a buying point at or above that level as it looks to retest highs and hopefully break them.
As a trader, I’ve learned to not force things and be ready for a downside play too. If the break to the upside is not there and the stock drops, look for a possible entry at $1.80 where the stock has been supported.
BioCryst Pharmaceuticals (BCRX) is a Chinese bird flu play. A few years ago during a past bird flu outbreak, BCRX was one of the names that got run up by momentum players trading on the bird flu news. With the outbreak in China becoming bigger every week, BCRX has my attention again.
BioCryst has more than just the bird flu outbreak going for it. On April 1, the company received a comment letter from the U.S. Food and Drug Administration that outlines a pathway by which BCRX could file a new drug application seeking regulatory approval of intravenous peramivir. Certainly there has been an increase in attention in BCRX since early April, and the volume shows that. Where there is volatility, there are traders and chances to make profit. A potential entry in this could be the high of Friday of $2. You want to see volume continue to be high volume and look for it to retest the $2.20 high and break that.
-- Written by Andrew Anger in Milwaukee.
At the time of publication, author had no posisions in stocks mentioned.
Andrew Anger, based out of Milwaukee, is a proprietary trader, focused on technical analysis in small- to large-cap stocks. He graduated in 2012 from Saint Mary's University of Minnesota with degrees in marketing and entrepreneurship. You can follow him on twitter @angertrader.