Monday’s Top Stocks From TradersWire
Less than expected GDP figures and
uncertainties related to Iraqi elections discouraged buyers. It’s
Friday. Nobody is willing to carry stocks over the weekend. Let’s look at weekly
charts.
Diamonds Trust (DIA) finished just above the 38.2% retracement level to
avoid five consecutive losing weeks. Notice, the 14-period RSI is improving. We
may be seeing a recovery rally next week. If this current level does not hold,
the issue may test the prior declining trendline.
Although it was a down bar, the Nasdaq-100 Index formed a bullish tail
above its 50% retracement level. The 14-period RSI is still weak, but it is
trying to take out a steeply declining trendline.
Now, three stocks for Monday:
Amgen Inc (AMGN): The issue staged a recovery rally in the afternoon and
formed a bullish tail. Long AMGN if it trades above 61.86. Target is near 63.80.
Risk 0.5-0.75.
Nextel Communications (NXTL): Like AMGN above, the stock shaped a nice
tail. Long NXTL if it takes out 28.50. Target is 30. Risk 0.5.
QLogic Corp (QLGC): The issue failed to break above a resistance line and
finished near the day’s low. Notice, the 14-period RSI is showing a negative
divergence. Short QLGC if it slips below 37.40. The initial target is the
January 24 low (36.45). Risk 0.35.
If you have questions, feel free to mail them to me.