TradingMarkets.com
Three Stocks You Need To Know About For Monday
Friday January 7, 5:41 pm ET
By Tsutae Kamada
Apple Computer (NasdaqNM:AAPL - News) broke out of a lifeless trading range and closed just below the November 29 high. Volume was extremely heavy. I don't remember who said this, but there are only two cycles in the market, narrow range cycle and wide range cycle. If your stock is stuck in a tight narrow range, watch out. It may be ready for a wild move soon.
Although it was a losing session, Diamonds Trust (DIA) held above its 50-day EMA (exponential moving average). Nasdaq-100 Index attempted to move out of a pullback, but it finished where it opened this morning.
Let's look at three stocks for Monday:
Celgene Corp (NasdaqNM:CELG - News): The issue tested a support level successfully and formed a bullish hammer on its weekly chart. Long CELG if it trades above 27.40. The initial target is 28.75. Risk 0.5.
Electronic Arts (NasdaqNM:ERTS - News): The stock looks ready to resume its uptrend. It tested the 50% retracement level and finished near the day's high. Long ERTS if it takes out 59.32. The initial target is 61. Risk 0.5-0.75.
Shanda Interactive Entertainment (NasdaqNM:SNDA - News): The issue is testing its rising trendline. We are looking for a resumption of the uptrend. Long SNDA if it trades above 40. Target is near 45. Risk one point.
T.Kamada
P.S. Trade with me all day on Monday. Go to www.tradingmarkets.com/traderswire