Stocks Vs. Markets
The indices have been stuck in a trading
range all day. While there has not been much excitement on that
side, individual stocks are seeing a lot of action.
Today’s Watchlist:
(
IBM |
Quote |
Chart |
News |
PowerRating),
(
AVCI |
Quote |
Chart |
News |
PowerRating),
(
WCII |
Quote |
Chart |
News |
PowerRating)
Ever heard of this company
International Business Machines
(
IBM |
Quote |
Chart |
News |
PowerRating)? It’s funny, whenever I
talk about it with other daytraders, they say, “why are you
looking at that?” Remember, there is no need to limit
yourself to only trading Nadsaq stocks. A good setup is a good
setup.
On that note, IBM is
currently consolidating near its highs. With the 50-day MA
providing backing support, IBM looks poised to a make a move.
Watch for a move outside of the trading range to offer a trading
opportunity. If it breaks out to the upside, there is no overhead
resistance. If it breaks to the downside, you may consider a
short position. In this situation, watch for support near the top
side of the August consolidation pattern, a bit over 121.
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Avici
(
AVCI |
Quote |
Chart |
News |
PowerRating), a somewhat recent IPO, is poised to
break down below a key near-term support level. It is now trading
under its 50-day MA as well. Watch for a breakdown below
Wednesday’s intraday low. Ideally, look for a close below that
level followed by a continuation on Thursday. A more conservative
trader should watch for a move below the April 5 low.
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Winstar Communications
(
WCII |
Quote |
Chart |
News |
PowerRating) is trading
nears its lows once again. It tested support once on Wednesday,
but bounced. Watch for a closing move below this key support
level as well as the other low from May. If it can take out both
of these levels on a closing basis, it may head lower. The
conservative trader will wait for a closing move followed by a
continuation, while the more aggressive trader may take advantange
of an initial move below support.
Until later,