TradingMarkets 5 Stocks For Wednesday
Schlumberger
(
SLB |
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PowerRating) is approaching a trendline and
moving average support level at $79.50. The RSI (5) is oversold too so a decent
setup may be on the horizon. Notice how price accelerated after breaking out
from this area in early July. Also notice the negative divergence at the two
most recent price highs warning that a decline was on the way.
Phelps Dodge
(
PD |
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PowerRating) is benefiting from the record breaking run in Copper
prices (see
Futures Market Recap for more info) but the last two price highs were
not confirmed by the RSI (5). Copper hit a new all-time high today but PD
declined so not only do we have a negative divergence with the indicator but we
also have one with the futures. Is the stock telling us copper prices are set to
fall?
Cameco
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CCJ |
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PowerRating) is the world’s largest producer of uranium. However, the
stock failed to hit new highs recently despite the yellow metal hitting a new
record. Short-term support and resistance is clearly defined and could provide
an opportunity to turn a swing trade into home run.
Centex
(
CTX |
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PowerRating) has been declining for almost a month now as interest rate
worries have impacted the homebuilders. The down trendline hasn’t been broken
yet but a short-term support level looks to be forming. Coupled with today’s
record breaking Building Permits data this stock is worth watching (Click here
for today’s economic news).
Newmont Mining
(
NEM |
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PowerRating) recently broke out but the stock is running into
resistance at its 200-day sma. Gold bullion looks set to move higher (thanks in
part to bullish seasonals) and NEM should benefit.
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Ashton Dorkins