Tuesday’s Top Stocks From TradersWire
Urban Outfitters (URBN)
gapped down below our planned sell price at the open. When this
happens, do not short the stock immediately. You have to watch it at least for
15 minutes. A gap-down is a sign of weakness, but as you can see below, be very
careful if a stock opens below the lower Bollinger band. Normally this kind of
excessive weakness does not last long time.
The Nasdaq Composite index lost 1.98, and the Dow Jones Industrial average
closed at 10609.11, down 13.96. Volume was light.
Now, four stocks for Tuesday:
Take-Two Interactive Software (TTWO): The issue is pulling back from the
June 13 high, and it is testing a support line. Long TTWO if it takes out 28.35.
We are looking for 29.50. Risk 40 cents.
Career Education Corp (CECO): The stock managed to close above its
200-day EMA and formed a mildly bullish bar. Long CECO if it trades above 37.40.
Target is the June 14 high (39.60). Risk 70 cents.
Boston Scientific (BSX): The issue broke down below a channel and
finished near the day’s low. Short BSX if it moves below 28.60. The initial
target is 27.90. Risk 35 cents.
Celgene Corp (CELG): The stop may be shaping a double top. Notice the
14-period RSI is showing a small negative divergence. Short CELG if it slips
below 41.80. Target is the 20-day EMA (40.40). Risk one point.
Feel free to mail me your
questions.