Tuesday’s Top Stocks From TradersWire
Sharper Image (SHRP)
gapped down at the open more than 16% after the company said its
holiday sales were well below expectations. Actually, the stock was flashing red
light last Thursday. It failed to take out the 200-day EMA and closed below a
resistance line. Notice, SHRP also formed a bearish tail.
Following Thursday’s mildly bearish bar, Diamonds Trust (DIA) shaped an
engulfing bar. It appears the issue is ready for a pullback. Nasdaq-100 Index
could not record the fourth consecutive winning session. The issue, like DIA,
formed an engulfing bar and closed above the 20-day EMA.
Now, four stocks for Tuesday:
99 Cents Only Stores (NDN): The stock is struggling to break above a
resistance line. Short NDN if it falls below 15.95. Place a protective stop just
above the resistance line (16.36). The initial target is 15.
R.R. Donnelley & Sons (RRD): The issue may be forming a double top. Short
RRD if it slips below 35.07. The initial target is 34. Place a protective stop
at 35.34.Â
WebEx Communications (WEBX): The stock is testing the bottom of a
triangle. Long WEBX if it trades above 24.04. Target is the top of the triangle
(25.20). Place a stop just below today’s low (23.50).
Cytyc Corp (CYTC): The issue looks ready to resume its uptrend. Long CYTC
if it moves above 27.60. Target is near 29. Place a stop at 27.07.
If you have questions, feel free to mail them to me.  Â