Stocks to watch next week - Ciena and Rambus

( click to enlarge )

I wrote a post last week, that there might be a buying opportunity present in Rambus, as it bounced from its 15.70 horizontal support again. Notice how the stock has been trading in clear horizontal channel over the past weeks. It looks like the recent consolidation is ending and that it wants to move higher towards 20. I started to pick up some shares, everything below $18, I would accumulate more in the days to come. Even if the stock is not ready to go, at least there is a clear area under the recent test of support for which to place my stops. From a technical standpoint, the $19.07 area has been proved to be resistance over the recent weeks. More times the resistance has been tested, there is good chance for breaking above that point. I feel that there is a possibility for RMBS to go beyond this area next week. The OBV indicator is showing a healthy inflow of money, it still on a 6-month uptrend. The daily chart looks Bullish with both 20, 50 and 200 daily moving averages going up and MACD on top of 0, RSI in a Bullish area too. The -DI has cut below the +DI line, this implies that uptrend will most likely continue. The bias is now bullish in nearest term but remains neutral in medium term. 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, so please be aware that the share price depends in part of the news that comes to the market, causing generally large fluctuations in the share, so be careful if you’re not familiar with the stock.

( click to enlarge )

CIEN has corrected very sharply after recording a high of 16.63 on September 22. It has hit a recent low of 11.43 on November 02. Without considering Ciena's financial performance and condition, I believe that this could be a good level for a strong rebound in this stock. As such, Ciena is now a good trading Buy, with a stop loss at $12. The technical indicators are looking better for the stock with MACD indicator above its sell signal line, K line on top of D line and RSI indicator moving up from the 40 level. A close above $12.5 will impart bullishness and will help the stock move to the 13.62-14 band.

Other Stocks to watch - ( Pattern is Bullish Engulfing )

VALE - Vale S A ADR
YRCW - Yellow Roadway
ITUB - Itau Unibnco Adr
JASO - JA Solar Holdings
SRZ - Sunrise Senior
AMGN - Amgen Inc.
HON - HONEYWELL INTERNATIONAL
WAG - WALGREEN CO
LSI - LSI Corp
NE - NOBLE DRILLING CORP
NSM - NATIONAL Semiconductor
BA - BOEING CO
CA - CA Inc
NEXM - Nexmed Inc
UNP - UNION PACIFIC CORP
NGD - DRC RESOURCES CP
NXG - NORTHGATE MINERALS
ESLR - Evergreen Solar Inc
TEL - Tyco Electronics Ltd
EWBC - East West Bancorp
MCHP - Microchip Technology
ZMH - ZIMMER HOLDINGS INC
SFD - SMITHFIELD FOODS IN
TNE - Tele Norte Leste
FULT - Fulton Financial Co
RTN - RAYTHEON CO NEW
CTXS - Citrix Systems, Inc
PGN - Progress Energy Inc
VIV - Telesp Celular Part
PCL - PLUM CREEK TIMBER CO
PAAS - Pan American Silver
CREE - Cree, Inc.
PVX - PROVIDENT ENERGY TR
CCJ - CAMECO CORP
DGP - DB Gold Double Long
PX - PRAXAIR INC
DSCO - Discovery Laboratory
ID - Viisage Technology
CAAS - CHINA AUTOMOTIVE SY
THI - Tim Hortons
MDRX - Allscripts, Inc.
NSU - NEVSUN RESOURCES LTD
INFA - Informatica Corp
COL - ROCKWELL COLLINS INC
GNA - GERDAU AMERISTEEL CP
LNCR - Lincare Holdings Inc.
JACK - JACK IN THE BOX INC
MRVC - Mrv Comm Inc
VPRT - Vistaprint Nv
LLL - L3 Comm
BKE - Buckle Inc
HXM - HOMEX DEVELOPMENT
FOSL - Fossil, Inc.
ENS - ENERSYS
ERF - Enerplus Resources
WCN - Waste Connections Inc

Other Stocks to Watch - ( Pattern is Bearish Engulfing )

PFE - PFIZER INC.
BRCD - Brocade Communications
DELL - Dell Inc
GME - GAMESTOP CP
HUN - HUNTSMAN CORPORATION
KCI - KINETIC CONCEPTS INC
TGB - Taseko Mines Ltd NPL
GIGM - GigaMedia Limited
MDSO - MEDIDATA SOLUTIONS INC
PSSI - PSS World Medical Inc.
DISK - Image Entertainment
VPHM - ViroPharma Incorportaion
TK - Teekay Co
SORL - SORL Auto Parts Inc
TRP - Transcanada Corp
SRCH - Phage Genomics Inc
XRA - EXETER RESOURCE CORP

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 Folks. Have a nice weekend !!!
Cheers!

AC

Labels: CIEN, RMBS