Monday’s Top Stocks From TradersWire
It’s Friday. Let’s check
the weekly charts. The Nasdaq Composite Index is forming a declining
channel. The index bounced off the lower boundary of the channel, but it formed
a mildly bearish tail. Notice the 14-period RSI is approaching a declining
trendline.
The Dow Jones Industrial Average tested the 78.6% retracement level successfully
and may be ready for a minor rally. The 14-period RSI finished right at a
descending trendline.
Be sure to take some profits if the stocks cover your initial risk. Let me give you
an actual example. We bought Hartford Financial Services Group (HIG) at
66.43 with the initial risk of 50 cents. Shortly after 10:00 AM, the stock
traded above 66.93, so we sold half of our position and moved stop to breakeven.
As you can see, the remaining shares were stopped out at 3:00 PM.
Now, three stocks for Monday:
Cognizant Technology (CTSH): The issue is forming a bear flag. We are
looking for a breakdown. Short CTSH if it trades below 41.14. Target is 40. Risk
50 cents.
Eli Lilly (LLY): The stock is testing its support level and may be ready
for a bounce. Long LLY if it takes out 58.75. The initial target is 60. Risk
50-60 cents.
Williams Companies (WMB): The stock failed to close above the 61.8%
retracement level and formed a bearish tail. Short WMB if it slips below 17.79.
Target is near 16. Risk 50 cents.
If you have questions, feel free to
mail them to me.