Stock Picks and Trade Ideas for Wednesday - BAC, DRYS, BIDU
We have assisted to an interesting rebound in stocks since the begin of the week after few sessions of consecutive drops. I'm not quite sure if this rebound will definitively follow through. The volume of yesterday's session gave us a clear indication that something is wrong with this market, the rally was just a fresh air before a new leg down happen. European markets had also a nice rebound but the macro economy picture, is significantly deteriorating month after month. Fundamentally, the European economy is weak because of high unemployment and falling housing prices. The central bank is also content with cutting interest rates one to two more times before the end of the year. Be careful with the euphoria, still playing on the defensive side.
BIDU - It looks like there is just limited downside risk in the stock at current levels. On the upside, a move to the $280-$281 range appears likely. A close above $273 will have positive implications while a drop below $250 would negate the positive outlook. Technically the chart shows the stock is back to new rally as K line is on top of D line. Hold the stock with a stop loss at $244,20.
Chart courtesy of stockcharts ( click to enlarge )DRYS - The stock appears to have run out of sellers at current levels. The near-term outlook appears positive. A close above $25.98 would confirm the positive outlook and could push the stock to the target zone of $30.20.
BAC - The stock is showing signs of a short term top after rallying for almost 3 days. Technically, the chart shows weak sign as the stock is below both 50 day and 200 day moving average with MACD well below 0. However KD shows possible rally as K line is on top over D line. I'm looking for a good trade if the prices close above $27,25.
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
