Wednesday, December 2, 2015

TERP Chart

If one is willing to ignore that TERP has gone from $40 to less than $10 in about six months, a nice technical trade might be in play. The stock’s short term chart is forming a nice wedge, which means that a significant jump or drop is in the works soon. How do you know which way it is going to go? Just wait for the price movement to break above or below the wedge lines, signifying the direction the market will be taking the stock.
If you have been following my charts you have seen my recent post about VRX having been on a three month slide due to a downward channel (orange lines on chart). As is evident in the chart, the stock started trading sideways and actually breached the downward channel, which is a bullish sign. The immediate resistance is at $100. If the stock manages to breach and close above $100, it could move quickly towards $120.
The wedge breach witnessed earlier today looked very promising, but it receded and the stock price is now bouncing off the lower support line forming the wedge. If the stock fails to stay above this support line, we can see a quick retrace to <$30.
My previous GERN analysis still stands is worth reiterating:
“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.”