Tuesday’s Top Stocks From TradersWire
The Nasdaq Composite
Index gained nearly 19 points and shaped a narrow range bar. Notice
the index is forming a bear flag just below the 50% retracement level (4/8/05
high – 4/18/05 low).
(Charts courtesy of QCharts)
The Dow Jones Industrial Average took out a minor resistance level and closed
near the day’s high. Volume was light.
I would like to clarify something before I get into stocks for Tuesday. As the
fine print says, my report is not a recommendation or solicitation to buy or
sell any securities. It is provided for educational purposes only.Â
I use daily charts to show you buy or sell setups. These are just examples of
potential trades. Needless to say, if you are using a 3-minute chart, my entry
points are meaningless. Each trader has his own trading style. For many traders,
risking 50 cents is not acceptable at all. Please do your own chart analysis
carefully before opening positions.
Now, three stocks for Tuesday:
Davita Inc (DVA) formed a narrow range bar just above its support zone. A
buy stop order may be placed at 41.06. The initial target is the 20-day MA
(42.13). Risk 35-40 cents.
Office Depot (ODP) managed to hold above the upper boundary of a gap zone
in spite of last Friday’s bearish wide range bar. A buy stop may be placed at
20.63. The initial target is 22. Risk 50 cents.
Starwood Hotels (HOT) closed just below the 38.2% retracement level after
pulling back from the April 20 low. Short HOT if it slips below 56.25. Target is
near 54.50. Risk 50-75 cents.
If you have questions, feel free to
mail them to me.
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