Trade Ideas: ELN, THQI, UA, ZAGG

Elan Corporation, plc (ADR) (NYSE:ELN) broke out yesterday and traded nearly 2x normal daily volume. The stock has the potential to make a big run on Friday, so keep a close eye on ELN and don’t miss the trade. From the technical analysis perspective, the outlook for Elan Corporation is bullish. The stock is still in a very strong bull market with the MACD on top of signal line and the 50-day moving average on top of 200 day moving average. However, the daily momentum indicator has reached overbought levels and I believe that a near-term correction is likely to happen. The positive view would be negated if the share price closes below $9.50. Fresh exposures may be considered on price weakness, with a stop-loss at $9.50. A close above $10.42 may be used to enhance exposures.

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THQ Inc. (NASDAQ:THQI) is a well capitalized company, with $1.26 in cash per share and a book value of $3.03. With a short interest amounting to 14% of the companies float, it would take nearly 6 days of average volume for the short interest alone to cover. This stock could be a good short squeeze opportunity on any positive news. As noted above, $3.50 has proven to be a strong support area for the past twelve months. If it can hold above this level and double bottom, there will be minimal risk to the downside for a swing trade. Keep alert !!!

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Under Armour, Inc. (NYSE:UA) – Support at $62.50, made a huge reversal to the upside yesterday and closed at its high. Push over $69.05 is where I’d want to buy.

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Zagg Inc (NASDAQ:ZAGG) showed buying strength all day. The stock is on the verge of breaking out and it could happen very soon. Once the stock breaks $10.97, jump in and watch ZAGG take off.

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Other stocks to watch:

Cell Therapeutics, Inc. (NASDAQ:CTIC) – Found support at 50 day moving average. On balance volume strong.

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) can pop big time on any positive news.

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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