| From: dabum3 | 11/3/2004 8:25:04 AM |
| | Read Replies (3) of 13445 |
| |
STOCKS TO WATCH - WEDNESDAY, NOVEMBER 3
AGEN has a buy set up that we have used to success. We have a 3-5 bar reversal off a recent high with the price holding just above support.
The first bounce off the 50 day moving average is usually a very good low risk trade, especially when the price had hit a recent high. In looking at the MACD indicator, which measures the trend, it is showing positive fuel cells and if the 50 dma holds, the price should have the energy to set a new high.
The pull back in price has been on lower volume than what we saw when the price was rising. This indicates normal profit taking.
Again, the initial stop loss should be placed around $5.80. If the price gaps down below the 50 dma at the open, the trade is null and void unless the price can gain back at least half of yesterday's loss.
If the trade kicks in, the initial price target is about $8.20. A 4-1 risk vs reward ratio, about $2 of upside to 50 cents of downside. A very low risk trade if one sticks to the plan.
http://stockcharts.com/def/servlet/SC.web?c=AGEN,uu[h,a]daclyiay[d20040603,20041103][pd10,1!b50!f][vc60][iut!Lah10,30,5]&pref=G
With the market looking to open very strongly, I would wait about an hour to be sure we don't get a gap and crap. Thus, I am only presenting one stock to watch and will look at intraday scans an hour into the trading session for further selections.
Using this intraday strategy yesterday, I was able to pick up SIGM in early morning trading as it crossed up above the 20 and 50 day moving averages in one swoop. SIGM continued higher and closed at its high of the day.
http://stockcharts.com/def/servlet/SC.web?c=SIGM,uu[h,a]daclyiay[d20040603,20041103][pb20!b50!f][vc60][iut!Lah10,30,5]&pref=G
dabum |
