Tuesday’s Top Stocks
Diamonds Trust (DIA)
formed an inside bar as it did last Thursday. The stock may be
reversing to the downside, but I don’t want to stress too much about an inside
bar. As you know, there is also a possibility that DIA may form a prolonged
trading range.
We can observe a similar situation with Nasdaq-100 Index Tracking Stock (QQQ).
It shaped a doji bar just below the 38.2% Fib level, and it could be a warning
for a potential reversal.
Now let’s see three stocks for Tuesday:
Adobe Systems (ADBE): The issue could be forming a double top. It
reversed to the down side without challenging the June 30 high. Also look at the
weekly chart. The RSI is negatively diverging from the price movement.
Arkansas Best Corp (ABFS): The stock broke down below its rising
trendline on unusually heavy volume. As you can see, the deteriorating RSI
suggests ABFS may be forming a top.
Biotech HOLDRs (BBH): The issue is struggling to move above its 200-day
SMA. Notice it formed an inside bar, and BBH may be reversing to the downside.
Good night and see you tomorrow.