Wednesday’s Top Stocks From TradersWire
On last Thursday,
Diamonds Trust (DIA) formed a bearish tail right at the upper
Bollinger Band. I thought the stock was ready to pull back. On Monday, DIA
shaped an engulfing bar and closed poorly. Again, I thought the stock was ripe
for a pullback. Today, DIA refused to go down. It formed an inside bar. So,
what’s next?
We have three more trading sessions left for this year. Nasdaq-100 Index
is only 11 points away from the December 15 high. If the index gets a push from
the semiconductor sector, it can easily break out to a new high.
Now, three stocks for Wednesday:
Power-One Inc (PWER): The issue tested its 50-day EMA and closed near the
day’s high. Long PWER if it takes out 9. Place a protective stop at 8.71. Target
is near 10.
Gilead Sciences (GILD): After testing a support line successfully, GILD
broke above a short-term declining trendline. Long GILD if it trades above
35.52. Target is the December 14 high (37.29). Risk 0.75.
Insight Enterprises (NSIT): The stock formed a narrow range bar just
above a support line after pulling back from the December 14 high. Long NSIT if
it moves above 21. Target is 22. Place a stop at 20.53.
Feel free to mail me your questions.
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