AXP, HAL, CELG, AMSC and SYK (March 14, 2008)
Today’s RealMoney.com stocks are: AXP, HAL, CELG, AMSC, and SYK.
AXP has been in a prolonged downtrend and there is no indication that it’s letting up. The 50-day moving average has been defining resistance, so I’d be either flat or short until that dynamic changes. Don’t try to predict a bottom! Let the stock tell you when it’s done going down.
HAL continues to struggle with all the supply at $39. Each time the stock moves up to that level, the demand dries up and the supply overwhelms the bulls. But this latest test is occurring from a higher level, so I wouldn’t be surprised to see a successful breakout. I’d wait for a decisive move above resistance, then I’d buy.
CELG got up off the floor in December and has been gradually moving higher. But notice how tightly the support and resistance lines are squeezing together. Why not wait for the stock to pop above current resistance before buying? By the looks of the price action, you probably won’t have to wait long.
Notice how the lines connecting the highs and lows are both rising and converging. This is what a bearish wedge looks like, and we’d expect this pattern to resolve to the downside. However, with the stock back above the 50-day moving average and moving higher for the past 3 days in a row, I’m starting to suspect that this stock is close to breaking out of the top side of the range.
SYK is back down to test the January low. But notice how the stock is well below the 50-day moving average. That’s an indication that the downside move has been overdone and is poised for a snapback. Further, yesterday’s intraday range fell below the January low, but then moved higher to close at $60. So the bulls rejected the bears’ attempt to break through prior support. If you’re with the bulls, at least protect your position with a stop just below $58.00.
Be careful out there.