The market is heating back up today and the following stocks; KNDI, RENN, PLUG,
ARNA and GLUU could all be solid winners in the short term. There are a few
strong technical patterns here on KNDI and PLUG and solid catalysts on RENN,
GLUU and ARNA. As always, entry is the most important part of swing trading so
here is what Im looking to do. Kandi Technologies ( NASDAQ:KNDI ) engages in the
design, development, manufacture, and commercialization of off-road vehicles,
motorcycles, mini-cars, and special automobile related products. The market cap
on KNDI is $82 million. While the volume is light on KNDI and outside my normal
filter, the chart is what Im most attracted to here. It shows a strong ascending
triangle that could definitely breakout to the $4 range. The price action is not
at the apex of the triangle yet though so it might be a little early still. If
the company gives traders something to be excited about the reported short
interest of over 7 days to cover could help spark a move. Renren ( NYSE:RENN )
operates a social networking Internet platform in China similar to Facebook.
RENN has a market cap of $1.5 billion which is definitely outside my normal
range of $100 $300 million but I like this stock now that Facebook is promoting
their IPO. Recently RENN sold off after less than desirable earnings and a bear
market. Now RENN is clearly oversold Ill be looking to swing this stock for $1
$2 per share. The short interest here alone could help drive RENN higher if it
can hold this turn. Plug Power ( NASDAQ:PLUG ) an alternative energy technology
provider, involves in the design, development, commercialization, and
manufacture of fuel cell systems for the industrial off-road markets and
stationary power markets worldwide. PLUG has a market cap of $49 million. I like
PLUG off the bottom trendline and like KNDI above I think PLUG wants to
breakout. I would not be surprised to see PLUG head into the $3 range in the
short term based on this price action. Ascending triangles are known for higher
lows with a top resistance area. As those lows get higher the resistance around
$2.60 gets weaker and weaker until one day it pops into a new trading range. I
played PLUG for profit when it broke $2.40 early November and Im eying it up
again here. Arena Pharmaceuticals ( NASDAQ:ARNA ) is a clinical-stage
biopharmaceutical company, focuses on discovering, developing, and
commercializing oral drugs in the therapeutic areas of cardiovascular, central
nervous system, inflammatory, and metabolic diseases. ARNA has a market cap of
$210 million. Analysts Piper Jaffray has upgraded ARNA with a target of $3 ahead
of their obesity drug NDA re-submission. I tend to agree that well see a walk up
soon and like ARNA here off the $1.30 range so I continue to watch for entry.
Glu Mobile ( NASDAQ:GLUU ) engages in the design, marketing, and sale of casual
and traditional mobile games worldwide. GLUU has a market cap of $180 million
and I believe the recent pullback is simply due to the broader market dip. With
Zynga to kick off their IPO roadshow next week I believe theres a short term
opportunity here for at least $1 per share upside before GLUU hits resistance
around $3.70.
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