NEW YORK (TheStreet) -- Good day traders!
Let's be careful out there today, as there is a lot of outside factors affecting the market right now. So be cautious.
1. First, let's look at Boardwalk Pipeline Partners, which provides transportation, storage, gathering and processing services for natural gas and natural gas liquids.
Boardwalk Pipeline traded up 2.99% on Thursday, closing at $18.60 per share.
- Thursday's range: $17.99 - $19.07
- 52-week range: $11.99 - $33.00
- Thursday's volume: 2,365,805
- 3-month average volume: 1,530,760
Boardwalk Pipeline Partners looks good -- the chart has come off the bottom and is up 53% since the middle of March. This chart has worked perfectly off the bottom, trading up and consolidating. It continues trading up, forming the perfect stair-step pattern.
This chart was a rounded bottom breakout on April 15 and has been doing great since, working its way to the 200-day simple moving average. There is some resistance at yesterday's close, as the price action is having a tough time clearing this level. Watch for price action to break through the yesterday's levels and continue trading to the 200.
I'd look for an entry above $18.28, which is the t-line, but I still like the chart as low as $17.81, Tuesday's low. I'd start with a one-quarter position, then add to the position once it clears the $19 level. I'd set a stop below Tuesday's low, at about $17.77, which is the 34-day exponential moving average.
First, I would target the 200-day simple moving average at $20.64. Then I would target the gap down that occurred on February 10. The top of the gap is at $24.09, which is 22% from yesterday's close.
Stay long until you see confirmed sell signal. Confirmation comes when the chart has made a clear reversal.
2. Now, let's look at Pretium Resources, which acquires, explores for and develops precious metal resource properties in the Americas. The company's mineral interests consist of gold, copper and silver exploration projects.
Pretium traded up 3.33% on Thursday, closing at $8.39 per share.
- Thursday's range: $8.10 - $8.42
- 52-week range: $2.70 - $10.14
- Thursday's volume: 279,646
- 3-month average volume: 345,810
Pretium looks good from a technical standpoint, as the chart has been in an uptrend after forming a double bottom in March and April, which tested the uptrend. Then, it traded above the double bottom levels, but failed to break out until about June 20.
On Tuesday, price action tested the 20-day simple moving average with a big bearish candlestick, followed by a morning star signal on Wednesday. This tells me that the 20-day simple moving average is a strong support level, and will continue higher. Yesterday's trading confirmed this by opening at the 20-day simple moving average, and closing back over the t-line.
This is a small pullback opportunity, where the price is at the low end of the current uptrend channel and is offering a slightly cheaper entry level. Again, I would start with a one-quarter position and add to it on strength.
I'd look for an entry above the t-line, which is at $8.31. I'd set a stop below the recent lows, at about $8.07. My stop would be on a close below this level, not interday trading at this level. I would target the overhead resistance levels, but ultimately I would target the 52-week high of $10.14 -- 17% to the upside.
Stay long until you see a confirmed sell signal or a close below the t-line.
Next up: WWE.
3. Lastly, let's look at World Wrestling Entertainment, an integrated media and entertainment company, engaged in the sports entertainment business worldwide.
World Wrestling closed up 6.06% at $12.60 per share.
- Thursday's range: $11.90 - $13.00
- 52-week range: $9.62 - $31.98
- Thursday's volume: 4,565,807
- 3-month average volume: 2,279,220
Pull up your tights and jump into the ring with World Wrestling Entertainment. (Couldn't resist.) As a technical trader, I try not to pay attention to the companies I trade. I look at charts -- that's it. However, I can't help but think that WWE is a funny company to be trading. But the chart looks good.
With that said, watch this chart, as it made a big move yesterday, trading up 6%. Price action is up almost 20% since May 16, after a huge gap down on that day. Yesterday's candlestick cleared the major moving averages and closed above the 50-day simple moving average, and piquing my interest.
This chart needs to stay above the 50-day simple moving average. Simple as that. I would look at entering this trade on strength above the 50. Today will be an important day for WWE, so I would wait for this chart to confirm yesterday's bullish move. I'd set my stop pretty tight with this one, and set the stop just below the 50-day simple moving average on a close.
The best thing about this chart is the gain potential, so target the 200-day simple moving average, which is about 38% to the upside.
WWE is reporting earnings on July 31, so this trade is only good until then, as I don't recommend holding over earnings. Stay long until you see a confirmed sell signal or a close below the 50-day simple moving average.
Good luck traders!
Come see me at my second home and sign up for the two-week trial. You'll find a trading room with tons of professional traders who help each other learn and succeed.
At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
TheStreet Ratings team rates BOARDWALK PIPELINE PRTNRS-LP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BOARDWALK PIPELINE PRTNRS-LP (BWP) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 8.7% when compared to the same quarter one year prior, going from $101.40 million to $110.20 million.
- Net operating cash flow has slightly increased to $135.80 million or 5.02% when compared to the same quarter last year. Despite an increase in cash flow, BOARDWALK PIPELINE PRTNRS-LP's cash flow growth rate is still lower than the industry average growth rate of 17.51%.
- BOARDWALK PIPELINE PRTNRS-LP's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BOARDWALK PIPELINE PRTNRS-LP reported lower earnings of $0.99 versus $1.37 in the prior year. For the next year, the market is expecting a contraction of 5.5% in earnings ($0.94 versus $0.99).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BOARDWALK PIPELINE PRTNRS-LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: BWP Ratings Report
TheStreet Ratings team rates WORLD WRESTLING ENTMT INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WORLD WRESTLING ENTMT INC (WWE) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WWE's revenue growth trails the industry average of 14.6%. Since the same quarter one year prior, revenues slightly increased by 4.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- WWE's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, WWE has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- The gross profit margin for WORLD WRESTLING ENTMT INC is currently lower than what is desirable, coming in at 32.22%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.39% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$9.37 million or 58.94% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: WWE Ratings Report
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