A Few Stocks That Might Only Hold Another Day or Two
MXC - Reversal was only a matter of time on this one. As I thought HERE once it consolidated it would more than likely retest $40. I also expected a 30-35% correction before changing direction. Yes the stock probably doesn’t belong this high, probably extremely over valued on all accounts and probably will be much lower in a month or two once things cool off and the big players have found another security to play with. BUT the FACT of the matter is all that doesn’t matter. This is a speculative commodity play, which is explained HERE very well. This probably will open $41-42 regardless and if the momentum can carry over and could test $45 tomorrow.
Can it test new highs? I doubt it .. BUT I wouldn’t rule it out. A squeeze to new highs would be fueled by one main thing - inpatient shorts last week trying to knock through the $30 support and finding themselves upside-down on the adds. I’d watch for this to squeeze and wait for it to break back through $40 before attempting any shorts.
PDO - Similar to above - I would let it test the $20 level before doing anything. If it can’t break through I’m not sure I’d short it just yet even though the downside is probably around $3-4 dollars. Too much risk when it could easily move towards new highs. I’d like to see it test $22-23 and began its sell off before thinking about it.
FPP - no real rhyme or reason here, it’s just going to follow the rest (PDO MXC), this will more than likely test $6.50-7 tomorrow at which point it’s probably going to find some resistance levels. If it can test $7 and hold it’s gains it may be a multi day squeezer. If this holds today’s gains out of open I would be a buyer looking for the $6 break.
ROYL - too much of a move, any gap and run I’d be bearish on tomorrow. Although it’d only be an intra-day trade I wouldn’t suggest shorting and leaving for the day, at any point it could take out new highs. Join us in chat tomorrow because as many were trading these stocks today - I’m sure they’ll be in play both ways (long and short) tomorrow.
