OTA's Picks for Momentum

Picks for January 5, 2010

 

 

 

ADBE RESISTANCE LEVEL - $37.30

 

ADBE is sitting on support from its breakout in early December.  The stock looks like it wants to bounce off this support, which is why we are watching it on Tuesday.  We are looking for a reversal move, which should occur if the stock can break through Monday’s high of $37.30.  If ADBE can break through this high, we will have a two-bar reversal, which is a bullish sign for this move.  Keep a close eye on ADBE for Tuesday.

 

 

DELL RESISTANCE LEVEL - $14.81

 

DELL has been sitting in a range the past six trading days, but could make a move soon.  This stock looks like it wants to move higher, but it needs to break through the $14.81 for this to occur.  We are buyers of DELL once it does break through this high and we expect to see an increase in volume push the stock higher.  You want to keep a close eye on DELL for Tuesday’s trading day. 

 

 

EBAY RESISTANCE LEVEL - $24.00

 

We are watching EBAY very closely on Tuesday for a breakout move.  The stock is sitting right below $24.00, which is resistance for this upside move. If you look at the daily chart, you will see a short-term consolidation period where its 10 day moving average caught up to the breakout from December 23^rd.  We are buyers of EBAY once it breaks through $24.00 and we expect to see strong volume push the stock higher.  You want to keep a close eye on EBAY for this upside move.

 

 

GRMN RESISTANCE LEVEL - $32.24

 

GRMN is breaking out of a trading channel and could make another move on Tuesday.  The stock closed up $1.48 on Monday, hitting a high of $32.24.  This high is resistance for Tuesday’s continuation move.  If the stock gaps above or trades through this level within the first 20 minutes of the morning, we will wait for the move through range highs of $32.49 before entering this trade.  GRMN is a fast moving and volatile stock.  This is the type of stock we would recommend to most traders that they cut their share size when they trade a stock like this. 

 

 

STOCKS FROM JANUARY 4, 2010

*Percentages are based on Percent Gained/Lost per Trade accumulatively

 

CSCO – No trade.  Using our rules, we did not make this trade due to the stock making new highs, pulling back making new highs again, all within the first 20 minutes of the morning.  If you continued to watch CSCO there were other opportunities to enter this trade at a later time.

 

DELL – No trade.  Stock did not break resistance.

 

ERTS – No trade.  Stock broke our entry at the open.  If you continued to watch ERTS, you could have entered this trade when it went back above $18.00 after the first 30 minutes of the morning.

 

XLNX – No trade.  Stock made new highs early, pulled back and made new highs again right at the 30 minutes mark.