Monday’s Top Stocks From TradersWire
Does it look like a
cup-and-handle formation on the daily chart
of the Dow Jones Industrial Average? I know the index is nearing its
resistance level, but don’t be too quick to short the market. The Dow Average
recorded three consecutive winning sessions and closed near the day’s high.
The Nasdaq Composite Index gained 13.7 points, and it finished right at
the 20-day SMA (simple moving average). Volume was less than its daily average.
Now, four stocks for Monday:
Morgan Stanley (MWD): The issue bounced off a support line and closed
near the best level of the day. Long MWD if it trades above 57.75. We are
looking for 60. Risk 0.75.
Juniper Networks (JNPR): The stock is shaping a bear flag on the daily
chart. Short JNPR if it trades below 21.54. The initial target is 21, and the
second target is near 20. Risk 35 cents.
Amazon.com (AMZN): The issue held above last October lows and formed a
bullish tail on the weekly chart. Long AMZN if it moves above 35.39. Target is
near 37. Risk 50-75 cents.
Mercury Interactive (MERQ): This is also a setup from a weekly chart. The
stock tested the 38.2% retracement level and finished the week strongly. Long
MERQ if it takes out 46.55. Target is 49. Risk 0.5-0.75.
T.Kamada
If you have questions, feel free to
mail them to me.