----------- STOCKS TO WATCH - MONDAY - FEBRUARY 7 ----------------
VRSN has been in a steep downtrend. Over the past week, it has been trying to find a bottom and in the six trading sessions prior to Friday, the price traded higher earlier in the trading session only to sell off later in the day. On Friday that reversed. The price went lower early in the trading session only to finish near the high of the day on increasing volume.
While the price was trading lower, the MACD which measures trend, was rising. This is the sort of divergence technicians look for when using technical indicators. CCI which shows a stock overbought or oversold is rising from an oversold position.
stockcharts.com[h,a]daclyiay[d20041105,20050205][pb50!b20!f][vc60][iut!Lah10,30,5!Ld5]&pref=G
Entry target $25.85. Price target $27.50. Initial stop loss $25.35.
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AIRT is in a consolidation pattern following a steep price rise about a week ago, convincingly breaking the downtrend. The consolidation is along the 50 day moving average and on light volume.
We have strong fuel cells as shown by MACD and money flows are terrific. If price can break above the 50 day moving average, we should see the next leg up.
stockcharts.com[h,a]daclyiay[d20041105,20050205][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Entry target $18.53. Price target $20.00. Initial stop loss $18.15 after the trade triggers.
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NAT had a steep climb off the last 3 bar drop pattern back around the middle of January. That pattern dropped back into a major support level with both the 20 and 50 day moving averages. We now have another 3 bar drop but not into support at this time. The pattern is still a valid one to play. I just don't know if we'll see another run like the last. We'll play it to at least test the recent high.
MACD fuel cells are still looking OK. They need to turn up here though. Money flows have been very strong.
stockcharts.com[h,a]daclyiay[d20041105,20050205][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Entry target $47.37. Price target $50.25. Initial stop loss $46.40.
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SANM looks like a good pick for those of you who like to bottom fish. The CCI is deeply oversold after a steep drop in price. One of the patterns I look for in a stock that has sold off like SANM, is a pattern where we have a couple of narrow range bars followed by a bullish engulfing pattern, where Stochastics are deeply oversold. I like to see the bullish engulfing pattern range about twice the size of the previous day's candle. We have this set up with SANM.
This is the type of set up we had with TMR about a month ago and had a nice 8% short term pop. I think SANM is good for 50 cents which would also be an 8% return from the entry price. It might even provide a 75 cent profit.
stockcharts.com[h,a]daclyiay[d20041105,20050205][pb50!b20!f][vc60][iut!Lah10,30,5!Ld20]&pref=G
Entry target $6.25. Price target $6.75. Initial stop loss $6.05.
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