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Technical Watchlist: Lindblad Expeditions, First Majestic, ImmunoGen’s

Posted on Wednesday, December 4th, 2019 by Sam Quirke

Here are 3 companies with promising technical setups and internal momentum thrown into the bargain too. They’ve each been under pressure from the bears in recent months and years but the bulls look set to take back control in the short term at least and they’re definitely worth keeping on a watchlist in case a breakout is confirmed. As with all technical trades, if you’re thinking of getting involved be sure to plan your trade and trade your plan.

Lindblad Expeditions (NASDAQ: LIND)

Shares of Lindblad Expeditions (NASDAQ: LIND) have been trading in a tight range since reporting Q3 earnings at the end of October. EPS and revenue both missed analyst estimates and the stock gapped down over 10% on the news. Investors were quick to step in however and within 3 trading sessions shares were back to pre-earnings levels.

This appetite for shares of the New York-based travel company, even in the face of poor results, bodes well for their performance in the short term. As shares have consolidated in the 4 weeks since the release and the bears have failed to take it down since momentum is starting to swing to the long side. The technicals are lining up for a breakout to north and investors would do well to keep LIND on their watchlist.

This is a stock that’s lost 20% since September but looks hungry to reclaim it. There was a bullish MACD crossover in mid-November and shares are testing their one-month highs with a view towards getting to past $17. There’s a structural downtrend to broken first but with solid support at the $15 level, the odds favor the bulls.

Breakout Watch:  Lindblad Expeditions, First Majestic,  ImmunoGen’s

First Majestic (NYSE: AG)

Shares of Canadian silver miner First Majestic (NYSE: AG) are up almost 80% for 2019 with most of the work being done in the months prior to September. The stock is closely correlated to the precious metal it mines and shares have broadly tracked the commodity’s prices. They’ve bounced around a 20% range in the past 4 months and are right up at the top of that range as we had into the final stretch of the year with a string of higher lows showing on the weekly chart.

Were shares to break September’s high of $11.62, it’s not hard to see them making a break for the high teens. These are levels not seen since 2016 when the stock lost over 60% in 3 months. The aggressive move down makes the way back up that much easier, especially if the underlying metal makes a move too.

With that in mind, investors should remember that gold and silver are often seen as safe assets to hold when equity markets experience volatility. Were we to have a repeat of last December’s market meltdown, AG could be an interesting buy. Its shares popped almost 40% this same month a year ago as equities were roiled.

Breakout Watch:  Lindblad Expeditions, First Majestic,  ImmunoGen’s

 ImmunoGen’s (NASDAQ: IMGN)

As with most biotech stocks with sub $1 billion market caps, ImmunoGen’s (NASDAQ: IMGN) investors are no strangers to volatility. In just over a year’s worth of trading, shares fell 85% through June of this year. Dodgy earnings and even dodgier trial data were the main culprits behind the collapse but the stock looks eager to turn the story around.

Shares of the cancer treatment company have caught a strong bid since the summer and are up 100% in the past 5 months. Higher highs and higher lows make for a pretty reading and that’s exactly the setup on offer as shares look to take back lost territory.

This isn’t the first time that the stock has tried to write a comeback story. Shares were trading at these very levels back in 2017 having fallen over 90% in the prior year. Just like now, however, buyers stepped in around the $2 mark and the stock caught a 700% rally through the spring of 2018.

The company’s last three earnings reports have been promising, with earnings beating estimates and management raising guidance. The 50-day moving average crossed back above the 200 day moving average last month and as shares continue to breakout, investors will be looking for history to repeat itself. If the stock can get towards the $6 mark, sights will be set for double figures; that’s how powerful biotech rallies can be. As with all biotech stocks, however, investors should be aware of upcoming trial results and have an exit plan ready just in case.

Breakout Watch:  Lindblad Expeditions, First Majestic,  ImmunoGen’s Other Stocks to add to Technical Watchlist: Meritor, Banc of California, Fate Therapeutics

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