Thursday’s Top Stocks From TradersWire
VeriSign (VRSN) never
traded below Tuesday’s low, so we did not open a short position. The
stock refused to go down. As you can see below, it closed at a new high on
strong volume. Although the RSI has broken above a declining trendline, it is
still showing a negative divergence. Once a resistance line is broken, it
becomes a new support line. If that is the case, VRSN may consolidate just above
this new support line. Anyway, I will be watching the stock closely.
Diamonds Trust (DIA) managed to gain 0.09 point and closed at a 10-momth
high again. Like VRSN above, the RSI is negatively diverging.
Nasdaq-100 Index could not finish above the December 3 high. Notice, the RSI
is showing a negative divergence here, too. Be careful with new long positions.
Now, three stocks for Thursday:
Akamai Technologies (AKAM): The issue decisively broke out above a
resistance line on extremely heavy volume. Long AKAM if it trades above 12.80.
Target is near 13.50. Risk 0.35.
OSI Pharmaceuticals (OSIP): The stock is struggling to take out 50. Short
OSIP if it moves below 48.23. Target is 45. Watch out 47 area. It may become a
support. Risk one point.
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Lyondell Chem (LYO): The issue may be
forming a double top. Notice, volume is decreasing, and the RSI is negatively
diverging. Short LYO if it trades below 28.32. Target is the December 8 low
(25.61). Risk one point. Â
Feel free to mail me your questions.
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