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Tuesday, August 05, 2008 

Stock Picks and Trade Ideas for Wednesday - GHM, AAPL, COMS

Chart courtesy of stockcharts ( click to enlarge )

Shares of 3Com Corp surged more than 10% after the company raised its first-quarter sales and profit forecasts amid gains in China. 3Com Corp expects its first quarter results to be stronger than expected due to solid performance its China operations. It expects sales in China to be 10% higher than in the fourth quarter. Company also said it expects to end Q1 with about $530 million in cash. Even with the spike today, the cash position is about 64% of 3Com’s $851 million market cap, in my honest opinion this is a good stock to hold if you're long. Currently stock has a high level of shorts ( click here to see ) and any further good news could force these bearish bets to cover and thus provide another round of buying pressure, or in the other hand if the price holds or raises, the short squeeze will happen. Looking at the daily chart, 3Com Corp is coming back to life after has broken the descending triangle pattern with good volume. In addition KD show buy signal as K line has just rose above D line. Based on current trend the stock may go till $2.19 per share or the 50 day moving average before facing the next resistence. The stock now looks poised to move higher.

Chart courtesy of stockcharts ( click to enlarge )

AAPL is finding support from broken resistance around $155. There is a lot of support between $150 and $155, but long-term direction will not be established until the triangle is broken.

Chart courtesy of stockcharts ( click to enlarge )

GHM - Looking at the daily of Graham Corp. we can see a nice a nice upward channel pattern. The trend is clearly up, but the stock got overextended and declined on high volume yesterday. A break below its 20-day moving average would be the next bearish signal and I see support around $80. If the stock can go up again to bring K line up, then you should consider a good entry point, when stock breaks above $105 on above average volume.

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 Tomorrow !!!

AC

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  • I'm a 43 year old Independent Trader using proprietary technical analysis with more than 18 years experience of investing in the US stock markets. I started this blog in 2006 simply as a way to share my thoughts about capital, risk management, and trading. My blog contains only my personal opinion and is provided for informational purposes only.

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