Wednesday’s Top Stocks From TradingMarkets
Negatively diverging indicators can
help us to detect deteriorating conditions of stock prices. As you
can see on the daily chart of palmOne (PLMO), the RSI has been steadily
going down in spite of rising prices. I’m sure many traders sold PLMO today. If
you have been watching the stock closely, you had a chance to sell it when it
re-tested its broken rising trendline.
The market staged a rally in the afternoon. Accompanied by increased volume,
Diamonds Trust (DIA) formed a hammer at the 50-day SMA (simple moving
average), and Nasdaq-100 Index Tracking Stock (QQQ) shaped a doji bar.
Let’s see three stocks for Wednesday:
Gilead Sciences (GILD): The issue has bounced off the rising 8-day SMA,
and looks ready to resume uptrend.
Symantec (SYMC): The stock has tested a rising trendline successfully.
Look for a resumption of the uptrend.
Maxim Integrated Products (MXIM): The issue may be forming a double
bottom. It also formed a bullish hammer.
Good night and see you tomorrow.