Monday’s Top Stocks From TradersWire
Why did the market go
down again? Because, CNBC talked about a head-and-shoulders
pattern on the air (LOL). Now, it is public knowledge. Are people ready to dump
their shares at the open on Monday? Let’s see the daily chart of Dow Jones
Industrial Average. It decisively broke down below the neckline. Some of you
may question the validity of this pattern, but if it is valid, we may see the
index to test as low as near 10051, just above the 70.7% retracement level.
Anyway, it looks too bearish. Maybe we should expect a recovery rally.
The Nasdaq-100 Index recorded three consecutive losing sessions. As you
can see, the index is approaching its 200-day moving average. Many traders use
this average to check the long-term trend of stocks and indices.
Now three stocks for Monday:
NovAtel (NGPS): The issue, on its weekly chart, closed just above a
support line. A buy may not trigger on Monday, but long NGPS if it trades above
23.96. Our target is 31. Risk one point. This is an inter-mediate term trade.
Biogen Idec (BIIB): The issue tested its 50-day EMA and formed a mildly
bullish tail. Long BIIB if it takes out 65.54. Target is 68. Risk 0.75-1.00.
XM Satellite Radio (XMSR): The stock failed to move above Thursday’s high
and closed near the day’s low. Short XMSR if it slips below 33.83. Target is
near 32. Risk 0.75.
Feel free to mail me your questions.