Tuesday’s Top Stocks From TradersWire
eResearch
Technology (ERES) was mentioned as a short idea in this week’s
Barron’s, according to Briefing.com. As you can see below, the stock
is pulling back from the March 11 low, and it is struggling to take out the
38.2% retracement level. ERES closed at 12.22, just above a small gap zone.
The Nasdaq Composite Index tested its 200-day SMA (simple moving average) and
formed a mildly bullish tail. The 14-period stochastic is beginning to turn up,
and we may see a minor recovery rally. The Dow Jones Industrial Average could
not move higher in spite of last Friday’s bullish tail. It lost 0.6% of its
value and closed at 10565.39. Volume was less than its daily average.
Now, three stocks for Tuesday:
Wachovia Corp (WB): The issue tested the 200-day EMA and shaped a tail.
Notice the 14-period stochastic is indicating a positive divergence. Long WB if
it takes out 51.20. We are looking for a 1-point gain. Risk 35-50 cents.
Comverse Technology (CMVT): The stock reversed to the upside and closed
near the day’s high. Long CMVT if it moves above 25.02. Target is the March 15
high (26.10). Risk 0.35-0.5.
Foot Locker (FL): The issue has formed a tail at the 38.2% retracement
level, and it may be ready to rally out of a pullback. Long FL if it trades
above 28.80. Target is near 30. Risk 50 cents.
T.Kamada
If you have questions, feel free to
mail them to me.