Reversal
Each morning this list will contain those stocks with the potential to
make a quick but tradable move in the first hour. The information listed
here is designed for the trader who catches the early morning momentum, between
the first five and 45 minutes of trading. Many stocks open each morning, run for
several points and then reverse. I will cover stocks with this potential and
highlight possible reversal points and resistance areas. These points need to be
monitored closely, as the stocks may turn quickly here. Be ready to lock in
profits quickly.
Morning Outlook
The S&P futures are -5.00 and the
Nasdaq futures are -24.00.
Watch for a turnaround in the first 10-30 minutes of trading. Keep an eye
on the stocks that gap the most in the morning. Use the Nasdaq tracking
stock (QQQ)
or futures as leading indicators.
Heading Up (at the
open)
Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating) is trading up 2 points on average pre-market volume. This
move takes it over its 50-day MA. Watch for resistance near 71 1/2 and 72 1/8.
If there is a reversal, look for support at 70 and 68.
Cell Genesys
(
CEGE |
Quote |
Chart |
News |
PowerRating) is trading up 5 points and over its 50-day MA. Look
for resistance near 28 3/4 and 30. In a reversal, there may be support at 26 1/4
and near 25.
Intuit
(
INTU |
Quote |
Chart |
News |
PowerRating) is trading up 3 points to 49. This move takes it over a
near-term consolidation level. Look for resistance near 50 and 51 1/2. There may
be support near 47 1/2 and 46, should it reverse.
Moving Down (at the
open)
Sycamore Networks
(
SCMR |
Quote |
Chart |
News |
PowerRating) is trading down 4 points, but still holding the
trendline I highlighted in Trading the Techs on Tuesday. Look for support near
157 and 154 3/4.
Sonera
(
SNRA |
Quote |
Chart |
News |
PowerRating) is trading down over 1 point. This move represents a
breakdown on the daily charts. There is no support underneath this level. If it
reverses, look for resistance at 31 5/8 and 32.
Â