3 of my stock picks next week are SPLS, SNDK and NYT. These S&P 500 stocks had either important breakouts or have just bounced off trend lines last week, indicating a promising week. The stock picks are all long trades with stop losses set right below the breakout level or trend line. As always looking at the longer timeframes would prevent us from trading against the long-term trend, while trading at the 60-min or 15-min graphs would help catch the reversal or the trend’s end much sooner.
SPLS daily stock graph had a breakout on Friday. If you haven’t bought the stock yet, I expect the first days of next week to be rather profitable, as the SPLS stock price is looking to climb potentially up to around $23. The stock is definitely trading sideways in the monthly chart, although I am expecting a long-term decline, after the railroad tracks of January and February candlesticks combined with the Fail Top. So I wouldn’t bet on a long-term uptrend in the daily graph, rather than looking for an exit point rather soon. On the other hand the uptrend might be quite fast considering the small retracement and the trending channel in the SPLS daily chart.
SNDK stock is another stock I would trade next week but without holding the stock for more than a couple of days. The obvious Friday’s bounce off the trend line leads to believe that the following candlesticks should be green as well. However I wouldn’t expect a climb above $42. That support level – now resistance – was broken during August with a range falling candlestick in the monthly chart and I highly expect to pose a lot of threat to the recent 3-month uptrend. That is why I would use the 60-min chart to trade out as soon as I point out a reversal signal there banking some cents per share.
NYT stock seems like a safer trade. The bottom trend line of the uptrending channel has been verified 4 times the last 2 months and it can be used for setting the stop loss, risking about 80c per share. Setting a target profit point at the $9.00 mark for half shares sounds reasonable, so that we won’t be stopped out in case the stock continues to print higher prices. The weekly and monthly NYT charts don’t show worrying signs and trading on the 60-min graphs would have best results, as we can see more detail of the price movement intraday and exit more efficiently.
Do you like the DRE stock? Average volume increase over 5% for dre. Money Flow Index (MFI) is bullish and moving up for dre.