Here are four stocks to watch riding positive earnings announcements.
Health Insurance Innovations, Inc. (HIIQ) broke out above a key resistance level on Tuesday, up $1.50, or 6.7%, closing at $23.70. The move above the $23 resistance level, which came on light volume of 945,700 shares, saw price cross over to the positive side of the 50-day moving average for the first time in two months. The stock is bouncing back from a steep decline in September, and has been climbing in a rising triangle pattern since its bottom at $12.65 on September 28. A week ago, the Web-based health coverage provider topped Wall Street’s expectations in its earnings report. Next targets: $27.75 and $33.
Lannett Company, Inc. (LCI) shot up and out of a bull wedge consolidation, gaining 15%, or $3.25, to close at $24.43 on very heavy volume of 2.1 million shares traded Tuesday. The recreational vehicle components manufacturer has thrived in the booming RV market, reporting unusually strong sales in its earnings announcement the day before. Price hit the resistance level at $25, which mirrors the October 16 high and forms a double top pattern. If the stock can close above that top, next targets will be $28 and $33. Short interest of about 23 times its average volume could fuel the move as shorts cover on a rally. (more…)
(Note from Tim: I have provided a hyperlink to the SlopeCharts for each symbol.)
Ignyta, Inc. (RXDX) popped 7%, or 95 cents, Tuesday, closing at $14.35 on heavy volume of 1.4 million shares traded. The move came on news of both positive clinical trial results and an announcement from the European Medicines Agency that it has given special designation and support to the company’s tumor drug. The stock has been on a strong march up since it broke above its bull wedge consolidation pattern on October 2, when the biotech company had announced positive drug data. There is significant lateral resistance around $15, notable because price could not persist above $15 the last time it was this high in December 2015. Beyond that, the rising channel top points to the potential of $22-$24.
Mirati Therapeutics, Inc. (MRTX) rose 55 cents to close at $14.25 Tuesday on no news. The stock has gained 400% since May 31. Price has been consolidating in a beautiful bull flag pattern for the past 9 days. If there is a return to momentum in the biotech sector, this oncology drug stock may run to $15.50 again in the short term and $20 soon after that. (more…)
CAI International, Inc. (CAI) is seeing excellent follow-through from last Friday, when price popped all the way up to a high of $26.12. On Monday the stock gained $1.00, or 3.8%, to close at a three-year high of $26.93 on 427,600 shares traded. Analysts have dramatically increased earnings expectations for the transportation finance and logistics company in recent weeks, and earnings will be announced on Wednesday (July 26) after the close. The stock is being traded at some of the heaviest volume this year. Having already blown through significant resistance in the $25-$26 zone, price could easily reach $30 in the near term. The price channel shows that this could be a $40 stock or more in the longer term. (more…)