Wednesday’s Top Stocks From TradersWire

The Nasdaq Composite
Index failed to take out
the 50% retracement level again and closed
at the worst level of the day. Notice the index also broke down below a bear
flag on increased volume.

(Charts courtesy of QCharts)

The Dow Jones Industrial Average has formed an outside bar and looks ready to
resume its downtrend.

Davita Inc (DVA) shaped another narrow range bar just above its support
level. It still looks good as a long candidate. A buy stop may be placed at
40.92. We are looking for 42.10-42.20 area. Risk 35-40 cents. It may be better
not to hold the stock overnight. DVA is announcing its earnings on April 28.

Now, three stocks for Wednesday:

Movie Gallery Inc (MOVI): The stock could not break above its resistance
level and reversed to the downside. Short MOVI if it slips below 27.87. Target
is the April 15 low (26.32). Risk 50 cents.

Electronic Arts (ERTS): The issue failed to move above the April 5 high
and closed poorly. Short ERTS if it trades below 52.60. Target is near 50. Risk
50-75 cents.

USG Corp (USG): The issue tested its 38.2% retracement level and formed a
mildly bullish tail. Long USG if it takes out 42.65. Target is 45. Risk 75
cents.

If you have questions, feel free to
mail
them to me.