Monday’s Top Stocks From TradersWire

As I mentioned in my morning report, be very careful when a stock gaps above
your intended buy price. As you can see below, InterActive Corp (IACI)
opened more than 20 cents higher than our planned buy entry point. Also notice
the issue gapped above the upper Bollinger band. Usually, this kind of momentum
is not sustainable. If a stock gaps at the open, watch how it trades at least
for 15 minutes.

Now four stocks for Monday:

ADTRAN Inc (ADTN): The issue is forming a bull flag. Long ADTN if it
takes out 26. The initial target is 27.50. Risk 50-75 cents.

Urban Outfitters (URBN): The stock is shaping a broadening top. Notice
the 14-period RSI is showing a small negative divergence. Short URBN if it slips
below 58.38. We are looking for near 55. Risk one point.

Lam Research (LRCX): The issue is attempting to rally out of a channel.
Long LRCX if it trades above 30.71. The initial target is 31.75. Risk 50 cents.

Navigant Consulting (NCI): The issue closed just below the lower boundary
of a gap zone. Short NCI if it moves below 18.14. Target is near 16. Risk 60-70
cents.