Stocks To Watch: In spite of market uncertainties due to the ongoing trade war between the U.S and China, some stocks are performing quite well. One stock that opened the week with upside momentum is Applied Recycling Centers of America, Inc. [NASDAQ: ARCI]. This stock closed yesterday’s session with gains of 72.86%. The Minneapolis based recycler of household appliances was also heavily traded and closed the day with volumes of 11.98 million shares. The intra-day trading range was $3.50 – 7.55, indicating an extremely volatile, but bullish day for ARCI.
This parabolic price increase came after the company opened its NY recycling center. ARC Recycling Inc, which is a wholly-owned subsidiary of Applied Recycling Centers of America will collect appliances through local partners. The company anticipates that this center will recycle about 18,000 refrigerators every year. This move will help remove about 1300 tons of materials from landfills. It is expected that this will help reduce carbon emissions, and save the Ozone. It’s a move that has also been lauded by the National Grid Energy Efficiency. According to National Grid’s Senior Program’s manager Tom Baron, this recycling center will provide their clients with a safe way to dispose of outdated appliances, while making money out of it.
From a look at the price action, the company is in a bullish reversal. Yesterday’s bullish candle saw the stock clear several months of losses and blow past resistance. Whether it will sustain this trend will depend on how it opens for trading today. If it opens the day higher than yesterday’s close of $6.05, and extends above yesterday’s highs of $7.55, it will be a good indicator that bulls are still in control. Such a scenario could see this stock make new highs in the day. On the other hand, if it opens below yesterday’s opening price, and clears out most of yesterday’s bullish candle, it could be indicative of profit-taking, as traders cash in on the parabolic move.
Other factors to keep an eye on are the U.S-China relations. Yesterday, the markets were largely positive following President Trump’s comments that China was willing to talk. As long as this holds, then stocks that already have bullish setups could gain in the day.