Five trading ideas for next week
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I like this chart on DryShips Inc.(NASDAQ:DRYS) alot. Prob one of my
Favorites right now. As you can see the stock brokeout on highvolume
last month and was able to keep this strength in March. The stock
ended the day on Friday with a strong gain of 14 cents (4%) to 3.48. It
pushed higher throughout the day and closed out the session near its
highs. This creates a bullish scenario for next week, one in which the
stock opens the day a few ticks higher and then continues its rally. The
break of resistance 3.33 (20-day SMA ) with high volume also was great.
The next point of interest is the the next point to look out for is the
high of February at 3.84. DRYS has a very interesting daily chart and
could have a bigger move soon. The technical chart looks really bullish
as the stock is trading above 50-day moving average and the 50-day MA
crossed above 200-day MA recently ( Golden Cross ). Additionally, the
Accumulation/Distribution shows that the stock continues to be under
accumulation by institutional traders and money managers. Heavy volume
on up days. A break of 3.84 would confirm continuation of the trend,
with a target area of 4.3 to 4.5. Worth watching for a breakout.
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Dendreon Corporation (NASDAQ:DNDN) - From a technical perspective, there
are some signs of a possible bounce here due to the positive
divergences (MACD, RSI, Sto) which often leads to short covering. If the stock can break
through Friday’s high of $10.74, we should see a strong follow through
move. Let’s see whether the stock can gather enough momentum to break
through that level.
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Elan Corporation, plc (NYSE:ELN) looks like is close to attempting a new
breakout. The stock hit a high of $15.25 on Friday, but failed once
again to close above that level.I expect to see a high volume move once
the stock breaks through resistance, as traders are watching this stock
closely. Technically speaking, this stock is currently in an uptrend and
is finding support from its 20-day MA at 13.91. Only a close below this
zone would have negative implications. Additionally, the the
Accumulation/Distribution is showing a rising move, indicating a rising
money flow into the stock. Keep the stock on your screen because once
ELN breaks through resistance, the stock should take off and move
quickly.
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I've mentioned Tellabs, Inc.(NASDAQ:TLAB) for the bulls out there. I
stand by this position. It looks like the stock is starting to turn back
up and indicators are giving the first bullish signs. I am looking to
see this stock re-test its Januray highs shortly. The MACD is increasing
and the stock price has regained its position above the 50-day MA. The
nearest trend is in favour of Bulls and TLAB has room to go higher. If
the stock can break through $4.10, we should see strong volume drive the
stock higher. Also watch out for other resistance levels at $4.08 which
is the 200-day moving average. I'm still maintaining the buy rating on
TLAB as the technical chart still shows very bullish sign with MACD
above 0.
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InterDigital, Inc.(NASDAQ:IDCC) continues to fall on light volume. Do
not be shaken out by MM games !! Inside trading has been very active in
January. They are buying now after pausing years. Essentially, if you
buy IDCC you have to be patient.
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Disclaimer :
This
is not an investment advisory, and
should not be used to make
investment decisions.
Information in AC Investor Blog is
often opinionated and
should be considered for
information purposes only. No
stock exchange anywhere has
approved or disapproved of the
information contained
herein. There is no express or
implied solicitation to buy or
sell securities. The charts
provided here are not meant
for investment purposes and only
serve as technical examples.
Don't consider buying or
selling any stock without
conducting your own due diligence.
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Labels: DNDN, DRYS, ELN, IDCC, TLAB
