------------ STOCKS TO WATCH - THURSDAY - MARCH 10 ---------------------
TERN is in a pattern known as a stair step. It rises, trades sideways, drops and then rises even higher before repeating the process again.
The 20 day moving average is above the 50 with a comfortable separation between the two. This indicates an uptrend and the price bounced back up and over the 20 day moving average yesterday on decent volume. The candlestick formed a bullish engulfing pattern. I would expect prices to rise from here.
Although MACD dropped below the zero line, it is reflective of the sideways trend for the last few weeks. During this time though, money flows have stayed positive representing a divergence.
stockcharts.com[h,a]daclyiay[d20041210,20050310][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Entry target $3.39. Price target $4.00. Initial stop loss $3.15.
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MAS (short). MAS is in a steep downtrend.The price tried to rally off a wide range bar that gapped down nearly 10% on 2/23 when the company announced that cost pressures are squeezing profit margins. As price was trying to bounce, money flows remained negatively divergent. This attempt at a rally, followed by another gap down in price suggests the stock has exhausted itself and I look for lower prices.
The gap from 2 trading sessions ago should serve as resistance so this looks like a good high probability spot to short. This is confirmed with the heavy downside volume and negative money flow readings.
stockcharts.com[h,a]daclyiay[d20041210,20050310][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Entry target $33.70. Price target $32.00. Initial stop loss $34.50.
dabum |
