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Monday, February 23, 2009 

Stock Picks and Trade Ideas for Tuesday - Resmed and Ciena

Chart courtesy of www.stockcharts.com ( click to enlarge )

RMD - Bearish technical outlook resulting from the breakdown of the uptrend line at 41.08. The stock outlook has deteriorated significantly over the past week. Resmed shares are likely to drift lower to test its immediate support line at 40. If that support failed, it will test the next support at 39.12. We can also expect psychological support at 38.93 ( 200 dma ). On the chart, the MACD is also painting a negative picture with the indicator below its signal line. In addition, the short term stochastic signal is showing some bearish sign. The bulls just do not have enough strength to push the price higher. Traders need to have strict discipline and stick to pre-defined stop losses in order to survive in this tough environment. Avoid fresh exposures until the stock closes above the resistance level at $41.08 ( 20-day moving average ).

Chart courtesy of www.stockcharts.com ( click to enlarge )

CIEN - Technically speaking, Ciena shares are attractive since its near to the support level. As long as the support is there, I don't think its a problem to include this stock in your short to medium term portfolio. ( I will say at least for 1 month). Anyway there's still the ability to gain in shorter period provided the support is there and if the overall market on recover mode. Momentum is decreasing and many technical indicator show bullish divergence with the price movement. If the stock can stay above 5.07, then it has potential to rebound to 5.75 resistance.

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 !!!


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About Me

  • I'm a 48 year old Independent Trader using proprietary technical analysis with more than 20 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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