Thursday’s Top Stocks From TradersWire
The prior resistance
line could not become a support line. The Dow Jones Industrial
Average broke down below 10900 on increased volume and finished near the day’s
worst level. Where is a potential support level? If you experiment with
Fibonacci retracement tools, you may conclude the next support level is 10750.
The Nasdaq Composite Index followed through to the downside. It slipped below a
channel and closed poorly. Volume was less than its daily average.
Now, three stocks for Thursday:
OSI Pharmaceuticals (OSIP): The stock is extremely oversold. It may be ready for
a minor recovery rally. OSIP filled the gap, and it formed a bullish tail.
Notice the MACD histogram is showing a positive divergence. Long OSIP if it
trades above 48.68. We are looking for 50. Risk 50-75 cents.
Martha Stewart Living Omnimedia, Inc. (MSO): This is another oversold situation.
Although the issue closed poorly, it managed to hold above the upper boundary of
a gap zone. Long MSO if it takes out 26.80. Target is 30. Risk 0.5-0.75.
Tech Data Corp (TECD): The stock failed to move above a declining trendline, and
it looks ready to resume its downtrend. Short TECD if it slips below 40.60.
Target is the March 3 low (39.47). Risk 50cents.
T.Kamada
Feel free to mail me your
questions.
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