7 Star Entertainment, Inc. SAEE
SAEE traded sideways yesterday, however we did see a significant amount of volume flow through the stock, to the tune of more than twice the three-month average.
The fact that SAEE didn’t lose any value, and maintained support above a penny is an encouraging sign. We are still on the lookout for further activity on this stock, because as we pointed out yesterday, the chart still looks favorable. A departure from the current holding pattern could certainly lead us to substantial realized gains.
As you can see on the chart below, SAEE is holding support above the 10 and 20DMA’s, and accumulation/distribution is as high as it’s ever been. We also have an RSI that is registering just below the 50-line, so we’ll be watching for a breach there as well. A PPS break of resistance at .013-.014 could get it there.
All in all, we are still fairly confident in SAEE’s ability to make positive stride from its current level.
Augusta Resources Corp. AZC
AZC hit our scanners this morning as a potential recovery play. Yesterday the stock tumbled more than 60% from its open just above 1.60, all the way down to the low .60’s. It appears as if we could witness a bounce off of that bottom today as the stock course-corrects following that sell-off.
The huge dip was catalyzed by the announcement that the US Environmental Protection Agency recommended the company’s application for a federal water permit be denied. That effectively puts the company’s plans to build out a copper mining facility on the scrap heap.
Still, whenever we see rapid losses of this magnitude, our thoughts always turn to reaping potential rewards off of the subsequent bounce.
GOGO, Inc. GOGO
We first began talking about GOGO on September 16th, after which time we witnessed an epic run from 14.79-31.55. Last week brought a consolidation and the stock reached a low of 24.24 earlier this week, where it found support just off of the 10DMA. Now that GOGO is headed back up, we will look for it to retest its recent highs.
Options Trading Idea:
On the options side of things, we are looking at GOGO’s 01/18 $30 Calls. They closed at 2.16 yesterday. Hypothetically, should GOGO break out to new highs by January, reaching 35.00, these Calls could be valued at upwards of $5.00 or better.
Extended Watchlist:
OXBT, CRNT, CBMX, ONCY,