Rocket Fuel Inc (NASDAQ:FUEL) on the daily charts has been in a very strong downtrend from the beginning of this year. The stock has been forming lower highs and lower lows and has found resistance at higher levels whenever Rocket Fuel Inc (NASDAQ:FUEL) has tried to bounce back. This shows that the momentum is stronger with the bears and the sellers seem to be in total control. The stock in the last session tried moving up but was met with resistance and could not sustain at the highs of the day. This proves to us that this current rally might be short lived, and bears should use this opportunity to short the stock.
LifeVantage Corp (NASDAQ:LFVN) on the daily charts has been forming lower highs and lower lows and hasn’t found strong momentum on the buy side. The stock has been falling right from the time it hit the intraday high of $1.51 and has seen the stock fall below an important trend line support. The momentum indicators for LifeVantage Corp (NASDAQ:LFVN) have given a bearish crossover which is a sell signal, and in my opinion traders should go short on the stock with a strict stop loss at $1.51 with a target of $1.24 in the near term. The relative strength index for the stock is not showing any sign of the inherent strength and confirms our bearish stance on the stock.
Delcath Systems Inc. (NASDAQ:DCTH) on the daily charts broke down from a very important support zone present at $3.53 from where it had seen itself take support a couple of instance in the past. The breakdown of this support intensified the selling in the stock, and it hit an intraday low of $3.02. Delcath Systems, Inc. (NASDAQ:DCTH) saw some amount of buying in yesterday’s trading session but found resistance at higher levels and could not sustain at the highs of the day. We believe that this was merely a profit taking rally and the downtrend in the stock should resume in the near term. We suggest traders to remain short in the stock with a strict stop loss at $3.55 with an interim target of $2.87 in a very short term.
I am not a registered investment advisor and nothing contained in any of the above commenatry should be construed as a recommendation to buy or sell securities. Investors should always conduct their own due diligence with any potential investment.