STOCKS TO WATCH - TUESDAY 10-19
STEC is the stock I'm going to start off with tonight. I don't follow the fundamentals but when FA and TA meet at the crossroad of opportunity, the potential for an explosive move improves. On 10/4, STEC announced:
>>> SimpleTech provided guidance that third quarter 2004 revenues would range from $60 million to $62 million. SimpleTech now expects revenues to grow sequentially by 31% to 33% from $56.5 million for the second quarter of 2004 to between $74 million and $75 million for the third quarter of 2004. <<<
STEC shot up 28% on the news that day.
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Since then, the price has pulled back and is now presenting an opportunity to move higher again. In looking at the chart pattern, note how the price came down to the 20 day moving average where it had a nice bounce. That support level also happens to be the support level of the open of 10/4.
With the kinds of money flows showing for STEC, this is where you would expect it to take out the recent high and move up from there.
The price has also moved up into the momentum bands. Price target is $5.80 - $6.00 and I would set my stop loss just below the 20 day moving average.
stockcharts.com[h,a]daclyiay[d20040518,20041018][pb20!d10,1!f][vc60][iut!Lc20]&pref=G
ARIA is bouncing off the 50 day moving average with a bullish engulfing pattern from an oversold Stochastic. These set ups are usually reliable for some short term gains. Stop should be placed just below the 50 dma.
stockcharts.com[h,a]daclyiay[d20040518,20041018][pb50!f][vc60][iut!Lp12,3,3]&pref=G
GMST is showing a very bullish candle as well with an oversold Stochastic. Major support just below at the 50 dma. Again, stops should be in play around these support levels because if support breaks down, it becomes resistance.
stockcharts.com[h,a]daclyiay[d20040518,20041018][pb50!f][vc60][iut!Lp12,3,3]&pref=G
dabum |
