NEW YORK (TheStreet) -- Good day traders!
1. First, let's look at Cerus, a biomedical products company operating in Europe, the Commonwealth of Independent States and the Middle East.
Cerus traded up 1.48% on Friday, closing at $4.11.
- Friday's range: $3.99 - $4.12
- 52-week range: $3.48 - $8.00
- Friday's volume: 606,328
- 3-month average volume: 634,142
Cerus looks good technically, as shares are steadily trading higher since reaching the 52-week low back in July. The stock is currently trading 18% higher than that low.
There are many things I like about this chart. There is a nice short-term uptrend from the bottom. The price action has cleared some near-term resistance levels, which opens the upside potential. And volume increases with bullish moves.
The chart also formed a bullish flag signal, a mini one, but it looks like a continuation pattern to me. Friday's candlestick is a mini bullish engulfing signal, which implies shares will trade higher. The next resistance level is at $4.34, which is 5.73% from Friday's close. Some traders may want to wait for shares to trade over this resistance level, while others may want to get in on Monday's open and trade through the resistance level.
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I would look for an entry around $3.99 to $4.08. I'd set my loss stop at $3.87, which was last Tuesday's opening price. I would target the 200-day simple moving average at $5.04, which is 22% from Friday's close.
Stay long until you see a confirmed sell signal or a close below the t-line.