Stocks to watch on Tuesday - Dryships and Palm
( click to enlarge )DRYS - DryShips shares surged more than 7 percent Monday on the potential for M&A action. According to Briefing.com, DryShips could be a potential buyout candidate for Danish conglomerate Maersk. The stock ended the session at $6.09, up 43 cents, or 7.6%. DryShips stock gave an important buy signal with the break above trendline resistance at 5.80 region. My long target at 6 was reached, however my model remains long, targeting 6.61. Immediate support is seen at 5.84 area.
( click to enlarge )PALM - It's hard to believe but the share price is falling nearly 65% since mid-January. The technical chart looks oversold short term. I don't usually trade this stock, but quoting around 5.5 support in a extreme oversold condition attracted my attention. Extreme oversold readings are particularly unsustainable and looking closely at the daily technical chart the MACD is showing a bullish divergence. This signifies that the prevailing trend is weak. If the prices fall to a new low but MACD traces a more shallow low, it would mean that bulls are ready to gain control, and this would identify strength at stock bottoms. In the above chart, you can see that bears are losing some momentum.
That's all Folks. See you tomorrow !!!
AC
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. See you tomorrow !!!
AC
