FXCM, Inc. FXCM - Update
FXCM was part of the bottom-play watchlist we put together for yesterday’s premarket report, and as it turns out, we made a very timely alert on this play.
The stock did in fact begin the rebound for which we were on the lookout, trading in a daily range from 8.16 to 9.64. It represented a modest, yet notable intraday increase of 18% on more than three times its 3-month average volume. We’re going to continue monitoring FXCM for signs of a protracted resurgence.
Earthstone Energy, Inc. ESTE
Speaking of stocks trading at or near recent relative lows, we have another candidate to put on our watchlist for closer monitoring this morning. ESTE has been establishing a pattern of violent swings on the chart over the past several weeks, and recently fell off of a cliff from nearly $16 back at the end of May, to the $12-range this week.
The stock received another gut-punch yesterday as it gapped down considerably on news of an approximately $45M public offering of ESTE common stock at a price of 10.50/share (>>VIEW PR). The revelation wasn’t received well and ESTE tumbled further, to a new 52-week low.
That’s where we come in; we’re going to be keeping a close eye on ESTE in the sessions to come, not only because it is approaching heavily oversold territory on the strength index, but also due to the track record it’s built up for violent and rapid swings to the upside. We’ll be interested to track its activity into next week for the possibility of a bottom-bounce.
Lending Club Corp. LC
We also wanted to circle back around to LC this morning, a play we alerted off of its bottom on May 23rd and followed to respectable gains over the following few sessions.
After a consolidation that brought it back down close to our original alert price, the stock has strung together a few bullish sessions, and is now on the cusp of breaking past a point of previous resistance. If the stock can break through the channel between 5.07 and 5.42 (highlighted in blue), it will have a chance at filling the considerable gap on the chart.
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