Daily Stock Picks 5/26/11

In today’s post, we continue to love HDY and CMRG.   We’ve revised our thinking on ZIXI and like the stock little bit more long term.  See detailsto each pick  below.

Stock: HDY
Company: Hyperdynamics, Inc. (AMEX)
Current Price: $4.42
52-Week Change: 333.67%
52-Week Low: $.98
Target Price: $5.00

We were looking to enter HDY somewhere between 2.50 and 3.50, with support levels at just under 3.50 and just above 2.50.  Looking at the chart then, HDY began a big moved up on 5/18, consolidated for some time and then gained more strength today, pushing the stock up .41, more than 10% to close at 4.25.  We were able to catch a very nice entry here at 4.00 on a pullback and remain long.  Looking at the chart below, it seems like we won’t hit solid resistance until 5.00 and so we’re holding HDY until then.

Casual Male Retail Group, Inc

On May 16th we noted that Casual Male Retail Group, Inc (CMRG, NASDAQ, 2.67 – 5.52) was looking like a solid buy – continually making higher highs and lower lows. However, we didn’t want to jump on the bandwagon just yet, preferring to wait for a pullback and some further signs of strength.  Well, now we’re close to it.  A glance at the chart below shows a few interesting points:

1)      On each of the three waves up, after running away from the uptrend, CMRG made a down flag (depicted in red) to bring it back to its uptrend.

2)      Upon returning to the uptrend, CMRG was able to bounce off of consolidation levels from the previous waves. For example, in the first wave, which began on 1/2011, the stock met initial resistance at the 2.00 level. After making the move up and then the red flag down, this 2.00 level then became support. And the pattern continued on the next wave.

3)      Currently then, we’re coming back to the consolidation level from the previous wave. We’re actively looking to enter CMRG somewhere between 3.50 and 3.90.

Zixilt Corp

On May 17th we noted that Zixilt Corp (ZIXI, NASDAQ, 2.09 – 4.88) seemed like it could be a good buy somewhere in the 3.00-3.15 range.  We noted that aggressive traders could get long on 5/17 and look for a move to 3.50-3.75.  Well, we hit 3.50 today and came right back down.  So it seems like ZIXI is still stuck in a downward draft from this recent downward flag.  However, we do believe that the longer term uptrend from early last year will push ZIXI out of its current consolidation area. And when it does, we’ll buy it.

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