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Tuesday, August 19, 2008 

Stock Picks and Trade Ideas for Wednesday - XTO, LOW, CIEN

Chart courtesy of stockcharts ( click to enlarge )

The stock is moving in an upward channel with higher highs and higher bottoms a sign of a genuine up trend in progress. The volumes are going up simultaneously along with prices, it is clear that the underlying bullish trend will sustain. RSI is clearly overbought and shows a negative divergence, which could lead to a strong correction this week. Corrections are always healthy in an uptrend. MACD averages, is still above the zero line in the indicator and as long as it remains above the zero line the trend will remain intact. Prices are above the major moving averages. Therefore, look for prices to correct downwards before continuing the up trend again. The major support for stock is now at $23.03 ( 200 EMA ).

Chart courtesy of stockcharts ( click to enlarge )

CIEN is starting to show signs of accumulation with high upside days and low downside days. Momentum has been rising since the August low and has reflected a strong divergence buy setup. Watch $19.03 for a breakout.

Chart courtesy of stockcharts ( click to enlarge )

XTO - The technical daily chart has kept moving downwards after hitting a record high at $73.74 in June 2008. The strong downward momentum in stock is not likely to end soon. In the chart, we can see the dead cross ( 2 Expotential Moving Averages of 50 and 200 are drawn in blue and red repectively ). However, it may be too early to be confirmed for a short signal as the 50 EMA just broke downwards the 200 EMA. We may better wait the further downward acceleration 50 EMA.

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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