Market Lab Report - Pocket Pivot Review for the Week Ended December 23, 2016

Published:

26 Dec 2016 19:27 ET

Notes from Gil and Dr. K regarding Pocket Pivot Reports sent out during the week ended December 23, 2016:

Myovant Sciences (MYOV)

GM / Dr. K - MYOV is a small, thin, recent bio-tech IPO with a compelling story that we have previously reported on the day before it had that +19.66% price move back in late November, less than a month after coming public. Since then the stock has settled back into the business of building a more substantial IPO base. The prior week the stock posted a big-volume pocket pivot off the lows of its current base, likely due at least partially to options expiration. On Friday of the week before Xmas, MYOV posted a less-obvious pocket pivot off the lows of the current base and coming back up through its 10-day and 20-day moving averages. This puts the stock in a buyable position using the the two moving averages a potential selling guides.

Twilio (TWLO)

GM - TWLO is an interesting situation here as it continues to bounce along in a low price range not too far from where the stock was trading back in July as it was just starting a big post-IPO price move. On Wednesday TWLO posted a big-volume roundabout type of pocket pivot as it blasted up through its 10-day and 20-day moving averages and up towards the 50-day line on heavy buying interest. The next day the stock ran into resistance at the 50-day line on equally heavy volume, but held above the 20-day moving average. On Friday, TWLO held tight at the 20-day line as volume declined sharply, indicating that sellers were potentially washed out at that point. While the resumption of trade on Tuesday will give us a better idea of where this might be headed, TWLO's ability to continue holding the 20-day line could bring about another upside move, so that is something to watch for here while using the 20-day line as a tight selling guide.

Dr. K - TWLO had two up days on Tuesday and Wednesday of last week on good volume after trading quietly in the days leading up to this price/volume action. This volume dry-up (VDU) action can be observed in a number of leading names. Even though TWLO has given back much of its gains, TWLO's open cloud-based platform holds huge growth potential, so a move higher from here would not be surprising, provided the general market holds up.

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