Friday’s Top Stocks From TradersWire
I know it is not fair to
blame everything on eBay Inc (EBAY) for today’s poor market action.
But, look at the daily chart below. A giant gap! EBAY lost nearly 20% of its
value on extremely heavy volume. The chart is totally destroyed. It will take a
super effort to fill this gap.
The Nasdaq-100 Index decisively broke down below a trading range. It is
safe to assume that the lower boundary of the range is a potential resistance
level. On the other hand, Diamonds Trust (DIA) closed slightly below the
range. The 38.2% retracement level is only inches away.
Now, four stocks for Friday:
Avaya Inc (AV): The stock bounced off its support level and may be ready
for a recovery rally. Long AV if it takes out 16.23. The initial target is 17.
Risk 0.35-0.4.
Fox Entertainment (FOX): The issue is in a pullback and closed just above
the 50% retracement level. Long FOX if it moves above 33.27. The initial target
is 34. Risk 0.35.
Seagate Technology (STX): The stock re-crossed above the 20-day EMA and
finished near the day’s high. Long STX if it trades above 17.46. We are looking
for the January 18 high (18.39). Risk 0.4.
IMPAC Mortgage (IMH): The issue is facing the 200-day SMA and 50%
retracement level to overcome. Short IMH if it slips below 22.25. Target is near
21. Place a protective stop just above the average line (22.75)
If you have questions, feel free to mail them to me.