Tuesday’s Top Stocks From TradersWire
At last the Oil Index
bounced. The confluence of the 50% retracement level and the lower
boundary of a declining channel prevented the further decline of the index.
Notice the stochastic is beginning to turn up.
(Charts courtesy of QCharts)
Although the Dow Jones Industrial Average recorded four consecutive losing
sessions, it formed a mildly bullish tail. Also the stochastic is showing a
positive divergence. On the other hand, the Nasdaq Composite Index gained nearly
five points and escaped four straight losing sessions. Needless to say, the
upper tail suggests sellers are still in control.
Now, three stocks for Tuesday:
Patterson UTI Energy (PTEN): If the Oil Index continues to improve, PTEN
may be ready to rally out of a pullback. Long PTEN if it trades above 23.86.
Target is 25. Risk 50 cents.
Cyberonics (CYBX): The issue is pulling back from the April 11 high and
testing the 61.8% retracement level. Long CYBXÂ if it takes out 41.88.
Target is 45. Risk 0.75.
Penn National Gaming (PENN): The stock is trying to move out of a
pullback from the April 13 high. Long PENN if it trades above 32.71. We are
looking for 34. Risk 50 cents.
T.Kamada
If you have questions, feel free to
mail them to me.