Tuesday, December 1, 2015
CLDN KBIO GERN
CLDN dropped hard last June, and has been consolidating since. Technical traders like to say that chart gaps like to be filled, and CLDN seems to really want to close the gap created in June (1). Since mid November, the stock is making high highs and higher lows (2) on the heels of very heavy volume (3). Given the recent price action, I feel that CLDN could actually easily close the gap to $2.20 in the next few trading sessions.
Trying to predict the price action of KBIO is not any easier than predicting the next move of a raging, angry bull. I was surprised, however, to find that even a wildcard like KBIO seems to be following a chart pattern, and is currently forming a wedge. The interesting thing here is that the support and resistance lines of this wedge has pretty similar slopes, making it very hard to predict if the stock will spike upwards or downwards at the inflection point. One thing seems certain: a break of support or resistance on this wedge will likely result in a huge price movement, but if you have been following KBIO, that is no surprise! If pressed to make a prediction, I would say that the stock will have another rally and break past the wedge’s upward resistance point.
GERN recently broke a major resistance point at around $4.30, and has soared past $5.00 (1 and 2). The next major resistance is at $5.50 (not shown on this chart}. The stock is likely to see some profit taking around $5.50, but if it manages to break past this level, it could easily soar to $6-$7 without much resistance. Should be fun to watch what happens here!