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A few requests have come in from Smart Chart Investor subscribers for me to review some individual stocks. Time to take profits? A few buy opportunities? Read on and find out.
Movado Group, Inc. (MOV)
Price recently eclipsed the previous high made in 2007, however, it is struggling to make meaningful new highs. It breaks above $35.00, can’t hold, then breaks below, back and forth.
The trend line seems to be supporting price well. If the trend line holds until price breaks above $35.00 again it should go higher. Currently, risk is a couple of red (down) weekly closes below trend line support. If price breaks above $35.00 then risk is two weekly closes below $35.00.
Salesforce.com, Inc. (CRM)
I wouldn’t buy it until it bounces off the trend line. That doesn’t mean it won’t go higher from here. From a risk/reward standpoint I would wait for the bounce. I just feel we’re too far from support—and therefore risk is too high—to buy here. Also, the 200-week moving average might offer additional support near the trend line.
J.C. Penney Company, Inc. (JCP)
The recent highs are lower and the recent lows are also lower, which is bearish. However, price bounced off the lows made in 2009. I could see taking a flyer at this with risk below the previous lows from 2009. Bottom fishing at it’s finest.
Getting in to thin air territory. When will the profit taking begin? I would prefer to buy it at a lower level near the trend line. Otherwise…. where do you set your risk?
American Electric Technologies, Inc (AETI)
Do you see the gap? Gaps liked to be filled. Let it fill the gap then buy.
Boston Scientific Corporation (BSX)
I would love to buy this at $7.00 after it fills the gap. I used to trade BSX in the late 1990’s. I would buy it at $10.00 and short at $20.00. It was a good one. Looks like it might be ready to take off. Remember, if you buy it you must have both an exit plan to limit losses, then once the trade goes in you favor you must have an exit plan to harvest gains.
Republic First Bancorp Inc. (FRBK)
Another good one. It just broke the highs made in early 2011 and eclipsed the 200-week moving average, which is bullish. I would prefer to buy it around $2.45 with a bounce off the early 2012 highs. The 200-day moving average is lining up nice with this area if it retraces.