Friday’s Top Stocks
Semiconductor HOLDRs (SMH)
staged a spectacular 3.3% gain. Volume was heavy, nearly twice the
daily average, and appears to be forming a morning star pattern on the daily
chart. Notice the stock closed above the declining trendline. The natural entry
point is above today’s high, but watch out for the 20-day EMA.
Let’s look at stocks for tomorrow:
Teva Pharmaceutical (TEVA): This is another example of the morning star
formation. The RSI is turning up, and it closed right at the declining trendline.
Wait till the issue takes out today’s high.
Colgate Palmolive (CL): The stock is forming a bear flag just below the
descending 8-day EMA. Look for a resumption of the downtrend.
FLIR Systems (FLIR): The issue looks ready to break out of the trading
range. Notice how the gap and the 8-day EMA are supporting FLIR.
Good night and see you tomorrow.
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