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Robert Edwards
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Contrarian daytrading technician who specializes in micro scalping of stocks (using 1 minute bar charts), swing trading of stocks overnight, weekly stock option premium selling, pre-market and post-market psuedo market maker and stealth trading activity, and selling commodity option strangles... More
  • Buying These Lucky $13 Stocks Petrobras (PBR) & Halozyme Therapeutics, Inc. (HALO) 2 comments
    Mar 28, 2014 9:28 AM | about stocks: HALO, PBR

    Who said 13 is not lucky? This week I sold two stocks at $13 or more and cashed in big. I will describe both of them now:

    Why Petrobras (NYSE:PBR) Is A Buy Under $13

    If you read my recent article, click here, I explained how I predicted a low of $10.17 in this stock, and missed my projection by 1 to 3 cents. However, I did not miss the buy. I bought at $10.20 in the aftermarket on 3/17/14. And just 8 trading days later, PBR has rallied to $13. Although I am still looking for a test of $15 since PBR has recently traded above the 50 week moving average on the weekly chart, before rolling over, and the 50 week moving average is now at $14.53, on a short-term basis we are quite overbought and could correct back a bit where one may want to load up. Lets look at a weekly chart of PBR here:

    (click to enlarge)

    I had projected a rally out of the bottom, to reach somewhere between $11.94 and $12.75, based on what PBR has done previously after two weeks moving up from the bottom. However, PBR has exceeded my short-term targets by hitting $13.03 so far, and it is Friday morning and we will likely trade above that level today. I do expect that we will hit some resistance as early as today or Monday, and should then quickly correct back at least $1 off the high. That is where I plan to start aggressively loading up again. Past corrections out of major lows in PBR, have seen a temporary top within the first 2-3 weeks, and then PBR has retraced 52% to 75% of the initial move. So far we have rallied from $10.20 to $13.03 and may well hit $13.75 before rolling over. I would think PBR would not be able to move over $14 on this first move out of the bottom without some consolidation first. Once we have a small correction of something approaching 50%, then I expect another strong thrust to the upside in PBR.

    Why HALO Is A Buy Under $13

    (click to enlarge)

    I recently wrote an article featuring Halozyme Therapeutics Inc. (NASDAQ:HALO), click here. In the article I explained why I was buying the stock in the $12 range, and mentioned how the stock could fall to $11 but from there it should rally $3.50 to $4. Well, yesterday, 3/27/14, the stock bottomed at $11.28 and quickly shot back above $12. It then spent most of the afternoon trading between $11.70 & $11.90 before finally closing up for the day and forming a bullish hammer candlestick formation. On the basis of this, I added to my position on the close. Today I have already partially liquidated my position as we have rallied above $13 in the premarket. I expect HALO will close up today and probably Monday as well. I will be buying all dips on the stock for the next day or two, and expect to see a rally towards $15.00 before we roll over again. Happy trading!

    Disclaimer:

    The thoughts and opinions in this article, along with all stock talk posts made by Robert Edwards, are my own. I am merely giving my interpretation of market moves as I see them. I am sharing what I am doing in my own trading. Sometimes I am correct, while other times I am wrong. They are not trading recommendations, but just another opinion that one may consider as one does their own due diligence.

    Disclosure: I am long HALO, PBR.

    Stocks: HALO, PBR
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  • Robert Edwards
    , contributor
    Comments (587) | Send Message
     
    Author’s reply » $18.18 high. If you use $3.86 low, a 50% correction of the up move from $3.86 to $18.18, would be $11.02, and yesterday we hit a low of $11.28. If you use $4.61, the lowest close, a 50% correction is $11.39
    28 Mar 2014, 10:46 AM Reply Like
  • Robert Edwards
    , contributor
    Comments (587) | Send Message
     
    Author’s reply » We did not get the rally I had hoped for today since CELG and GILD were slammed so hard and pulled HALO from the positive to the minus. Whereas those stocks are making new lows for the week, HALO has held with a low of $11.80 and hopefully will still close at $12 or higher and is holding up much better. I am using this selloff to add shares. In one account, the average price is $12.26 and in the other account the average price will be just below $12.
    28 Mar 2014, 02:53 PM Reply Like
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