Tuesday’s Top Stocks From TradersWire
The market attempted a recovery rally
on light volume. This is not really a bullish sign. Look at the daily
chart of Diamonds Trust (DIA). It broke out of a declining channel, but
volume was less than 80% of its daily average. Watch out for last Wednesday’s
high. It might become a resistance level. On the other hand, the Nasdaq-100
Index closed just below a descending trendline. As with DIA, volume
was weak.
Now, four stocks for Tuesday:
DR Horton (DHI): The issue tested its 50-day EMA successfully and closed
at the day’s high. Long DHI if it takes out a resistance level (39.90). Target
is near 42. Risk 0.75.
Semiconductor HOLDRs (SMH): The issue is struggling to move above the
confluence of two retracement levels. Short SMH if it slips below 31.14. The
initial target is 30.23. Risk 0.35. Â
Health Management Associates (HMA): The stock tested the January 11 low
and formed a mildly bullish bar. Long HMA if it trades above 22.50. target is
24. Risk 0.5.
QLogic Corp (QLGC): As I mentioned last Friday, the issue may be forming
a top. Notice the 14-period RSI is showing a negative divergence. Short QLGC if
it moves below 37.98. We are looking for 36.45. Risk 0.5-0.75.
Feel free to mail me your questions.
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