Monday’s Top Stocks From TradersWire

Doral Financial (DRL)
lost more than 43% of its value
in three days on extremely heavy
volume. What’s wrong with the company? Doral has stated that the company does
not know any information causing this drastic decline. The stock is definitely
oversold. I’m sure some of you are waiting for a minor recovery rally.  

Let’s look at the weekly chart of the Nasdaq Composite Index. Although it
managed to hold above 2000, it decisively broke down below the 38.2% retracement
level. Also notice the index is recording a lower high and a lower low. On the
other hand, the Dow Jones Industrial Average formed a bullish tail and finished
near the day’s high.

Now, three stocks for Monday:

Genentech Inc (DNA): The issue is pulling back from the March 15 high on
decreasing volume. It may still need to test the 50% retracement level, but long
DNA if it takes out 53.12. The initial target is 55. Risk 50 cents.

Overstock.com (OSTK): The stock failed to break above the 200-day SMA
(simple moving average) and closed poorly. Short OSTK if it slips below 45.73.
We are looking for the March 16 low (43.63). Risk 50-75 cents.

Express Scripts (ESRX): The issue tested the 20-day EMA and the upper
boundary of a gap zone successfully. Long ESRX if it trades above 83. The
initial target is 84.50. Risk 50 cents.

T.Kamada

Feel free to mail me your
questions.