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Very quietly the markets have rebounded nicely off their lows of 2010.
For the past week or so, I haven’t paid much attention to stock charts since the market was in a funk, but I decided to take another look at them today and see where some of my favorites stand.
One thing you’ll notice among the stock charts listed here and any stocks you come across, is that many of them will have similar patterns and indicators. Many of them have originally dipped below key moving averages and, as of today, closed back above them, while MACD and RSI are both turning back upwards.
Dow Industrial Average – Technically it is still a tad early to really say we are out of the woods yet, but we are making strides. What I would like to see is RSI moving above 50 and the Dow moving back above the 50-day MA. Should this wedge hold, then everything should follow suit.
Clearwire (CLWR) – Clearwire is a funny stock because it likes to move in mini trends. One month it may make a huge swing higher and the next it will come crashing back down. As we have closed above the 50-day MA, hopefully this move should continue higher.
China North Petroleum (NEP) – The NEP move is a classic stock chart. The stock makes a massive move followed by a 50% pullback and eventual move higher. Based on the technicals, this stock has a great chance of getting to at least $10.50
Caterpillar (CAT) – Caterpillar just barely closed above the 50 day MA, so I would still wait to see it move a little bit higher. If the trend holds, look for this stock to get back into the mid-60′s.
Schlumberger Limited (SLB) – This move is similar to that of Caterpillar. With further confirmation, I like this stock to get back into the 70′s and stay there.
AK Steel (AKS) - No doubt my favorite stock to trade. A great sign through the recent downturn is that AKS stayed ABOVE $20. With a nice jump above $23, I am looking for this stock to try and take out the resistance around $26.
Final Note – With the way the market has unfolded over the last couple of days, you will notice all the bullish stock charts. Make sure to wait for any confirmation needed and to keep any stops in place because these moves can easily be a trap.
Over To You - What do you think of the current market condition? Any particular stock you are looking at?