News Details – Smallcapnetwork
New Trade Alerts: GenVec (GNVC), Alnylam Pharmaceuticals (ALNY)
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February 2, 2024

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PDT

In This Edition.... New Trade Alerts: GenVec (GNVC), Alnylam Pharmaceuticals (ALNY)  From the Community  Open Trade Updates: FormFactor (FORM), WebMD Health (WBMD), Sell Leap Wireless International (LEAP)  New Trade Alerts You didn't think we were going to let a whole week slip by and not get any new trading ideas out there, did you? Here they are, with a few hours to spare if you want to get in before the weekend. GenVec Inc. (GNVC) - long/bullish Though we talk about low-priced (sub $1.00) stocks constantly at the site, we rarely recommend them as official trades - they just require a lot of monitoring and quick decision making that's tough to do with an e-mail newsletter. GenVec Inc. (GNVC) is a worthy exception though... we think it will behave consistently enough to move in the same direction for at least a few days in a row. We actually mentioned GenVec a few times through the community articles, with the most recent comment coming a few days ago when GNVC finally broke above a major resistance line. We saw a slight pullback from there, but on weak volume. Today, it looks like that short-term resistance line is acting as a floor.  We still view GenVec as a higher-risk play, but one that is worth it. Bear in mind, however, we can feel that way primarily because we have faith in our readers' ability to read charts and bail out if it turns the wrong direction, or to lock in profits if we get a big pop.  Alnylam Pharmaceuticals, Inc. (ALNY) - short/bearish Talk about coulda' shoulda' woulda'....we posed Alnylam Pharmaceuticals, Inc. (ALNY) as a bearish trading idea back on Tuesday when the stock was trading at $21.47. Now it's at $20.40, or 5% below where we mentioned it. Ugh. The 5% cushion would have been nice, but hey - the bulk of any downside potential is still in front of it. Besides, ALNY hadn't fallen under a major support level at that point. What you didn't see then (because we didn't show you then) was how Alnylam Pharmaceuticals shares were finding big-time support at the 38.2% Fibonacci retracement level. That floor snapped today though.  From here, Alnylam has a shot at finding support at the next Fibonacci line around $18.64. That would be an ok move, but it would be even better if ALNY didn't find support there and instead tumbled back the $15/$16 area. First things first though - all we have right now is a short entry.    From the Community High Flyers: LTON, OPTT, XTEX, CAMP  Technical Forecasts for BMOD, LTON, SSN, and STSA  Charting Outlook for NEPH, URZ, NVAX, and CPYE  Open Trade Updates The wishy-washy market this week was reflected in most of our open trades.... some up, some down, and most of them not really worth discussing. Three of them did stand out though, one of them because we need to make an exit if you haven't already. FormFactor Inc. (FORM)  I've admittedly been on the fence with this short/bearish trade, not sure if it was going to find a floor at the key support line - around $20.70 - I mentioned when we first took the trade, or instead going to fall under it. My bias was for taking profits once it got that low though, locking in a 17% gain with the move from $25.17 to $20.70. Well, I hope you weren't listening too closely ....FormFactor just hit $19.50, and is still headed lower. The plunge not only takes FORM under the lower edge of the support channel we were following, but also under August's low around $20. Now that any potential support level has snapped, there's no telling where FormFactor shares could end up. One thing anybody's who's still short should pay attention to is the lack of selling volume we've seen so far behind this breakdown. I still have my doubts, but I can't deny the bearish momentum. Leap Wireless International Inc. (LEAP)  This is one you should have obviously gotten out of by now, but if you didn't, here it is in no uncertain terms.... sell this position before things get any uglier. I've mentioned this before, but it's worth reminding you now the parabolic SAR (stop and reversal) indicator is the failsafe exit point on most all of our trades - particularly the ones that don't have much profit cushion. Leap Wireless International shares flipped their SAR indicator into bearish mode on the 1st. Now, to be fair, I was willing to give LEAP the benefit of the doubt, since those sharp plunges are often anomalous. And sure enough, the stock managed to float sideways for a few days after the plunge, staying in the hunt for a rebound. Once LEAP fell under the low from the 1st though (on the 9th), that was it - time to dump it. WebMD Health Corp. (WBMD)  Owning WBMD over the last few weeks has been a little more adventurous than I cared to experience (we spent time on the wrong side of a major support line), but it looks as if the uptrend we latched onto back in June has finally resumed.  The nearby chart of WebMD says it pretty clearly... the stock's finally making higher highs again thanks to this week's move. In the latter part of this week, the rising support line appears to have started acting as a floor again. More importantly, WBMD is moving higher on stronger volume. For everything we've been through here, we deserve to be up by more than the 16% we are. We're making progress all the same though.  That's it for now - have a great weekend.