3 Stocks Trying To Get Out Of Their Funk

August 17th, 2009 | Filed under: Stock Recommendations, , ,

While I am still tracking and holding some of my normal watch list, I thought I would look at some different stocks today… more specifically stocks that have been beaten and looking to head higher. Not only is there a lot of upside to these stocks, but there is really not much lower these stocks can go… other than bankruptcy.

China Architectural Engineering – CAEI

Looking at the chart there are a lot of things this chart has in its favor. First, the 50 simple moving average (SMA) just crossed the 200 SMA, which usually means the stock has been picking up pace and taken as a bullish indicator. Second the relative strength index (RSI) is still above 50. Finally, using the Bollinger Bands, we are looking for a possible bounce off the middle band to stay in the top half… still waiting for confirmation. Buy on move higher, with stop below middle band.

caei_081609

KKR Financial Corp – KFN

You cannot see it in the chart below, but the stock has not been able to cross the 200 SMA for a couple years; however, now it has made a good push above the 200 SMA, and the 50 SMA crossed the 200 SMA. On top of all that, it looks like the stock could have broken through a 1 year resistance. Keep stop anywhere below support (blue line).

kfn_081609

Liz Claiborne – LIZ

Perhaps it is just the child in me reminiscing. I have to admit the first cologne I ever got was Liz Claiborne brand; however, it does not look like many people have been buying anything from them over the last couple of years. The stock has been on probably the longest consistent downtrend I have ever seen, which also seems to have been running along side the 200 SMA. Many times the stock has tried to break though but been declined (red arrows). It looks like right now we are seeing its best shot. Stay tuned and wait for confirmation.

liz_081609

I use technical analysis to create these stock recommendations. Find out how to easily learn how to use technical analysis yourself.