Monday’s Top Stocks From TradersWire
In spite of the weak
market, Sina Corp (SINA) staged a powerful rally on extremely heavy
volume. It decisively broke above both the 200-day SMA and the resistance line.
Many investors pay attention to the 200-day SMA (simple moving average) to
determine the long-term trend of the stock.
We took a partial profit on McDermott International (MDR) as soon as it
covered our initial risk. The remaining shares were sold at the close.
It’s Friday. Let’s look at two weekly charts. The Dow Jones Industrial Average
failed to move above the 61.8% retracement level and closed near the week’s low.
The Nasdaq Composite Index finished poorly just below the 2100 level. If you are
still holding long positions, be careful and readjust your stops.
Now four stocks for Monday:
eBay Inc (EBAY): The issue broke down below a short-term rising trendline
and closed near the day’s low on increased volume. Short EBAY if it slips below
37.50. The initial target is the 20-day EMA (36.60). Risk 40 cents.Â
Forward Industries (FORD): The stock exhibited relative strength despite
the gloomy market. If you are familiar with candlestick charts, FORD has formed
a bullish hammer just above the 20-day EMA. Long FORD if it trades above 20.20.
We are looking for near 22. Risk 60 cents.
Owens Illinois (OI): The issue is pulling back to the confluence of the
38.2% retracement level and the 50-day EMA. Long OI if it moves above 25.02. The
initial target is 26. Risk 35 cents.
Chesapeake Energy (CHK): The stock may be running out of steam. Volume is
decreasing, and the stock is struggling to take out the 61.8% retracement level.
Short CHK if it falls below 20.90. The initial target is 20. Risk 40 cents.
Feel free to mail me your
questions.