Wk15: Stocks to Watch

5 Apr

Week 14’s watchlist was quite profitable once again. We’re looking for the rally to continue in week 15, but as always want to stay balanced with our longs and shorts.

Long:
FDO – A move above Friday’s hammer should lead to a return to the $34 area for this stock. Otherwise watch for a consolidation here at the $30.50 – $32 level.

FNF – We like this stock on a breakout and retest of the $20.50 level.
HGG – A nice Ascending Triangle in HHG. A buy over the hammer and a stop under the low is how we will play this stock. Price target $16.
MOS – We are looking for MOS to break out of the $46 area which has been a long time resistant point. Once a breakout occurs, this resistance will act as new support.
SMG – A break of $37 and we are long this stock. You have to look back over a year to find prior resistance, however even though it’s far back, it is still in play. Always back out of your time frame if you don’t see any support or resistance areas on your time frame.

WPI – Ascending Triangle with a great spike and pullback on low volume. As usual we enter over the hammer with a stop under the low.
Watch for dips in ADBE and GMCR for re entry and BKC for a breakout at $24.
Short:
GIS – Shorting GIS at $50.75 with a stop at $52.08 will allow for an easily managed trade. Watch out for a bounce at the $49 area, if it breaks with little hesitation a move down to the prior lows is likely.
HRS – Potential short here. We are waiting for a close below the last high candle which right now is last Thursday, Apr-2.
MATW – Shorting below Thursday’s low is where we like the entry into MATW. Watch for relative strength and weakness in all of these stocks. If the market is up and the shorts are only up slightly or down, then they are relatively weak to the market and are likely to head lower.SIGM – We are short underneath the inverted hammer with a stop over the high.

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