Stocks in Play for August 6 (ACAS, AONE, CIEN, ROYL)

Shares of Royale Energy (ROYL) soared 8.25% to 2.23 after the company announced that it has posted a $1,888,666 improvement in the first half of 2010, earning $702,879 compared to a net loss of $1,185,787 for the same six month in 2009. The majority of this income was attributed to the three months ended June 30, 2010 in which earnings were $1,075,394 compared to a loss of $294,731 in 2009. The stock has been on my list many times over the past few weeks, but the stock has not been able to breakout. If you look at the technical daily chart the stock has been trying to break through the high of $2.60 for the past 5 months, with no success. The trading range has been shrinking many times, which is a sign that the stock is going to make a move out of this range very soon. The stock was up on 15x normal daily volume. I am watching ROYL again tomorrow for a continuation move, and will be a buyer once it breaks Thursday’s high of $2.44. This is a fast moving stock, so watch it closely on Friday and be careful with your share size.

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The stock traded up today on a major brokerage upgrade. American Capital Ltd. (ACAS) closed up $.11 on above average volume. I am buyer of the stock once it breaks Thursday’s high of $5.74 for the continuation move. ACAS can be very tough stock to trade and has very fast moves, so watch your share size. The technical daily chart below still showing a bullish bias. KD line shows positive signs as %K line is rising on top over %D line and RSI continue moving up. I suspect the stock may continue to appreciate over the coming days. I would recommend watching the stock closely on Friday.

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A123 Systems (AONE) is displaying the characteristics of an ascending triangle. On the below chart one resistance point can be noted, is at 11.50, if it breaks out of this level target price is 13. A good breakout volume would be above 5M shares traded. I am very bullish in this stock.

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Ciena Corporation (CIEN) – In the technical daily chart below, we can see that the stock keeps declining but there is a clear bullish divergence on MACD. Cramer is bullish on this stock and I like the stock as a solid long term pick.

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Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.

About Antonio Costa 324 Articles

Antonio Costa is a 35 year old part-time trader who trade stocks in the US market.

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