Thursday’s Top Stocks From TradersWire
Intel (INTC) gapped up
at the open after the company reported its first quarter profit
increased 25 percent. Look at the 15-minute chart below. Intel formed a double
top, and it sold off in the afternoon. Notice the 5-period RSI was showing a
negative divergence while the stock was forming the second top.
(Charts courtesy of QCharts)
Although the Dow Jones Industrial Average held above 10000, it closed at the
worst level of the year on heavy volume. It looks so bearish, but the 14-period
RSI is indicating a small positive divergence.
The Nasdaq Composite Index hit the upper boundary of a gap zone shortly after
the open, but buyers did not have enough power to penetrate the boundary. The
index lost nearly 1 percent of its value and finished poorly.
Now four stocks for Thursday:
Transocean Inc (RIG): The 20-day MA and 50% retracement level were simply
too much to overcome for RIG. Short RIG if it slips below 48.35. Target is the
April 18 low (46.50). Risk 75 cents.
Rockwell Collins (COL): The issue failed to take out the 61.8%
retracement level and closed at the day’s low. Short COL if it trades below
45.15. Target is 43. Place a stop just above today’s high (45.94).
Gillette (G): The stock is pulling back from the April 11 high and
testing its support level. Long G if it moves above 51.95. Target is 53. Risk 50
cents.
CV Therapeutics (CVTX): The issue is testing the 61.8% retracement level
after pulling back from the April 18 high. Long CVTX if it trades above 21.39.
Target is 23. Risk 0.5.
If you have questions, feel free to
mail them to me.Â