Tuesday’s Top Stocks From TradingMarkets
It happened again.
Breakout buyers did not get the result they were looking for. I’m talking about
Phelps Dodge (PD). The stock broke out to a new high on heavy volume
Friday and formed a bullish wide range bar. I’m sure many traders expected the
continuation of the upward move, but PD formed a directionless inside bar.
Should you give up buying the new high stocks? if you are curious about the
answer, read “How Markets Really Work” by
Larry Connors. You may be pleasantly surprised.
Diamonds Trust (DIA) broke down below the 61.8 percent Fibonacci level,
but it managed to close above 100. Nasdaq-100 Index Tracking Stock (QQQ)
finished just above the 50-day MA and the 38.2 percent Fibonacci level.
Let’s look at three stocks for Tuesday:
Alcoa Inc (AA): The stock formed a bearish tail and closed near the day’s
low. Notice, AA is facing a huge gap to overcome. Look for a breakdown below a
bear flag.
Take-Two Interactive Software (TTWO): The issue tested a support line and
closed right at the 20-day MA. Look for a resumption of the uptrend.
Celgene Corp (CELG): The stock is in a pullback and has closed at the
rising 20-day MA. We are looking for CELG to challenge its resistance near 60.
For TTWO and CELG, a buy stop can be placed slightly above today’s high.
Good night and see you tomorrow.
If you have questions, feel free to mail them to me.
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