Nano Nuclear Energy (NNE)
Nano Nuclear shares surged again today.
Shares of the micro-nuclear reactor developer rose another 30%, reaching new highs of $16.50 on their heaviest volume day since May 28, when the stock initially broke above $5.
The 30% rally came on no new headlines, indicating that the stock’s momentum is likely due to attention from investors as shares ripped through $10.
Today’s closing price puts the stock in its first-ever “crescendo volume” situation.
This refers to the stock having hit an overbought reading of its RSI on the same day that the stock’s volume is unusually high while the share price is trading outside of its Bollinger Bands.
In this case, short-term investors should expect that Nano Nuclear shares will post a healthy pullback to normalize their recent rally.
Expect to see the short-term price for NNE shares pull back to the $11.50-$12.00 range for a consolidation before heading to their next four-to-six-week target of $20.
Salesforce.com (CRM)
After spending the last three weeks consolidating at $230, shares of Salesforce.com appear to be preparing for their post-earnings recovery.
On May 29, the company lowered its guidance for the next quarter, commenting that businesses were taking longer for the decision-making process to result in signed contracts.
That news sent the stock 20% lower the next trading day.
Salesforce.com’s management also commented that their long-term guidance remained intact, suggesting that the company was only expecting a soft patch in their sales cycle, not a reversal.
Shares now must contend with their bearish 20-day moving average, which is able to provide resistance for the stock at $245.
A break above that level will increase bullish attention for the stock, likely targeting the next move to the $270 price, site of the stock’s 50-day moving average.
Failure to break above $250, a key round number price for Salesforce.com, will increase selling pressure over the short term as traders will look to exit the stock after its post-earnings rally.
Chipotle Mexican Grill (CMG)
Chipotle shares tumbled by more than 6% after a light mention in Barron’s that the company has received complaints about their food portions.
The decline comes ahead of the stock’s 50-for-1 stock split next Wednesday.
This breaks from the normal pre-split pattern that many stocks take, which is to rally in the days ahead of the actual split, though there looks to be more of a technical reason for the sharp decline
Chipotle shares have spent the last week rallying almost 10% after the company saw Goldman Sachs initiate coverage of the stock with a buy recommendation.
The rally surged the shares into an unusual volatility move that was accompanied by a sudden increase in volume.
This situation is similar to what is described above as a “crescendo” in the stock’s price move.
The stock remains in its short- and intermediate-term bull market trend as both its 20- and 50-day moving averages are in a bullish trend below the stock’s current price.
Investors should expect to see support for Chipotle stock just below its current price at $3,175 and $3,125.
In addition, shares should also see long-term buying interest on today’s price drop ahead of next week’s 50-for-1 stock split.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.