Two Longs, Two Shorts

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Here are two stocks moving higher on news and two others showing weakening technicals.

American Superconductor Corporation (AMSC) jumped 66 cents to $14.54 Thursday on 604,100 shares, or double its average volume.  The wind turbine component maker beat Wall Street expectations in its earnings release on Tuesday.  The stock has been in a steeply rising channel since its late-October low under $6, and the channel top points to $19.

Evolus, Inc. (EOLS) popped $4.85 to $28.91 on 4.8 million shares Thursday. Shares in the provider of medical aesthetic products have rallied since the company received FDA approval a week ago for its treatment of frown lines.  The stock is right at resistance from its late August high, and a move through this level could get it to $34 next.

On the short side, Carvana Co. (CVNA), which dropped 39 cents to $33.02 on Thursday, has broken down from an ascending wedge within a declining channel off its September top.  There’s support at around $29 for the stock in the company, which operates an e-commerce platform for buying used cars. If that level doesn’t hold, then the stock could fall to next support at around $24-$25.

Medifast, Inc. (MED), which gave back 19 cents to $127.07 on Thursday, has been declining since September in a series of ascending wedges that have failed.  Stock in the healthy-living specialty retailer is currently in another ascending wedge near the top of its declining channel, which if it fails could pullback to test the $108 area.  The stop would be near last week’s high just under $132.

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