Wednesday’s Top Stocks
Driven by tech and
commodity stocks, the SPX and Nasdaq made
4-year highs. Also new highs are expanding which potentially adds to
the bullish case. The SOX–always a
market bellwether–also made new highs. Traders will be looking for
follow-through on Wednesday morning.
Here are a few ideas to help you prepare for
Wednesday’s trading:
Let’s begin by taking a look at a stock that has been in a downtrend for some time now.
The volume is picking up on NTAP which has been
consolidating for the past four days. Potential support may be building here and
some traders may be looking for a bottom to form here.
The RSI on this daily chart of Ford is not
confirming the high and the stock closed near it’s intraday lows. The divergence
between price action and the widely followed RSI oscillator is interpreted by
many technical traders as bearish. Therefore a pullback may be due here.
LLL is making a near picture-perfect flag on the
daily time frame and closed near it’s highs of the day. Let’s see if they can take it higher on Wednesday.
Amgen is trading in a high level consolidation. A
break above this area, if accompanied by high volume, would be bullish above
this range would be a bullish signal for breakout traders.
Google rallied strongly from a two-week pullback today
and closed near it’s highs. With support arising from strength in technology
stocks, we could see some positive action in Google tomorrow.
JP Morgan apparently is in the market to buy some
banks, says the Wall Street Journal. This stock may see some action.
AT&T is consolidating near it’s highs after a
two-week rally. If the market is strong tomorrow, AT&T may try to break above
these levels.
Brice Wightman