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Tuesday, September 16, 2008 

Stock Picks and Trade Ideas for Wednesday - BOOM, AMAT, YHOO

Chart courtesy of stockcharts ( click to enlarge )

Yahoo moved higher to the second target at $19.21. I had propounded the arguments for the formation of a long-term on a break of the downtrend line last week. The movement of the stock last week is promising and the short-term up trend can continue to take the stock higher to $20 or $20.19 respectively. Short-term traders can hold their longs with a stop at $18.25. But there is a cluster of resistances in the area between $20 and $20.19 that can impede any medium term up-move in the stock. Looking at the technical chart above, you would see after the stock hit the 52 weeks low last week, the huge rally that follows brought the stock back above the 20 day moving average. Another crucial element is the volumn which recently received four huge spikes showing some heavy buying since the stock is still going up after the huge volumn spike. Other supporting technical indicators are KD and MACD, both showing buy signal with K line on top over D line and MACD above the sell line. Maybe afterall this is finally the time that the stock is going to move up.

Chart courtesy of stockcharts ( click to enlarge )

AMAT - The key resistance to watch next tomorrow is at $16.60. Inability to move past this resistance would mean that the stock is moving down again to $16 or $15.88.

Chart courtesy of stockcharts ( click to enlarge )

BOOM - The stock created a falling wedge formation with bullish divergence on the MACD. If it breaks $30 level , then bullish confirmation is confirmed. This means there is more upside. I think this is quite likely. If it breaks $24.73, then bullish signal becomes very bearish sign. I think it's unlikely, but if it happens, then we might see $23 level.

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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