Thursday, April 19, 2007

ARNA, AF, IYG on the buy list.

AF has had a positive reversal the past few weeks. Beginning in mid-March, there was a lot of buying going on. It took a month to work through all of the "shorts" in order for the stock to pop back up above it's 50 day moving average on high trading volume. Today, it did just that. The ADX indicator at the top of the chart is showing a reversal pattern meaning that for now, the stock should change it's direction from down to sideways or up. The other reason it is in a buy area is that the MACD has made a positive divergence since March. However, despite all the good news, it may still take a little while longer for the stock to make a strong move to the upside so keep an eye on this one.




ARNA has a few things going for it. After a long down turn, it has jumped back above it's 50 day moving average on high trading volume and the MACD is going to cross the zero line to the upside. The MACD is at the bottom of the chart. The other issue is that the ADX lines crossed to the upside after a long down turn. So combining 3 indicators showing positive signals, this leads a trader to believe that the stock will turn higher.







IYG is an exchange-traded fund that has just broken past it's previous resistance point and is heading higher. Watch for this ETF to come back down and test the 20 day moving average and move back up. NOTE: The blue line is the 50 day moving average. Currently the 20 day moving average is at $129.36.








LVS is a buy candidate if it breaks out to the upside over $93. GRMN too if it breaks above $56 on high trading volume.

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