Stock Picks and Trade Ideas for the week ahead - RMBS, TRN, COMS, JPM, FNM
Chart courtesy of stockcharts ( click to enlarge )FNM sure took a hit in July and managed to find support around 10-14 with upside volume starting to pick up. The stock broke down its support on Friday on increased volume and selling pressure making this stock appear that it could easily be sent down to its support around 6.80. Only the break of the prior support now resistance confirmed by a daily closing will support higher levels. The indicators of the daily chart are still negative suggesting further possible pressure but a strong closing again above the top of Friday could change this scenery.
JPM - The stock is trading in a tight range between $39.26 ( 20 dma ) and $42 ( 200 dma ). I think the market is waiting for fresh news to define the trend, however if the stock breaks the 200-day moving average , then that is a bullish sign as higher prices. On the flip side, if the 20 day-moving average is broken to the downside, it is a bearish sign of possibly lower prices to come. Stay tuned.
Chart courtesy of stockcharts ( click to enlarge )Shares of 3Com (NASDAQ COM) crossed the 20 moving average this week to close at $2.16. The technical chart shows the stock is now in a bull market as MACD is high above signal line and K line is also on top over D line. In addition the short term trend is bullish as the stock is on top of the 20 day moving average. Next resistance is at $2.19, if this level is penetrated with heavy volume, the stock is likely to test next resistance at $2.38.
TRN - On Friday the stock broke a bullish pennant formation.This is a bullish development and most often leads to sharply higher. Prices generally exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.
RMBS closed at $15.67 Friday. Rambus is the frequent subject of patent infringement & anti-trust claim issues. Hynix Semiconductor, Samsung Electronics, Micron Tech have had patent infringement suits with Rambus. RMBS September option implied volatility of 103 is above its 6-month average of 74 according to Track Data, suggesting larger price movement. So, it’s predictable that something could happen soon. It’s time to be positioned and in alert. From a technical point of view, with KD going up the stock is probably ready for a rally. Short term traders can go long if stock breaks the level of $16.03 ( 20 dma ) and thereafter stock can target the level of $17.03.
Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.
That's All. See you Monday !!!
AC
Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.
That's All. See you Monday !!!
AC
Labels: COMS, FNM, JPM, RMBS, TRN
