Stock Chart Analysis DE

Deere & Company (Public, NYSE:DE)

DE had a strong rejection of the $70 area when the stock started to rollover in January. If this were towards the end of a trend you could call it a V bottom or tweezer bottom, but regardless of where it formed, the message was clear: buyers were waiting for it to dip. It broke over the 50 sma a couple of days ago and looks like it is resting for another push. It settled on the 20 sma today in a pretty negative tape and if it can get back over $88, then I think it will cruise over $90 and head back to new highs.


Good Trading,


Joey

for more analysis, check out downtowntrader.com

I had some router problems after the power outages in South Florida today, so I'm just gonna post a few stocks on my watchlist for tomorrow. These are long picks if the market looks like it will follow through after 10 am. It is probably prudent to note that most of the indexes are right up against their declining 50 day sma's after being up three days in a row and the VIX is pulling back into a trend line. However, that doesn't mean they can't go higher for a few more days. The following stocks that are close to 52 week highs and looking like they are starting to turn back around.

ASTI
VMI
CPRT
PEG
ZOLL

If the markets are down tomorrow, then I will probably just stand pat or look to QID.

Good Trading,

Joey

Stock Chart Analysis ABAX

Abaxis, Inc. (Public, NASDAQ:ABAX)

ABAX just finished pulling back into long term support and looks like it may be confirming it as support. The 26.75 area was previous resistance in 2006 and 2007, before being broken late last year. While it may not be ready to resume the rally from here, there are a few interesting possibilities here. First, a trade to the declining trend line looks likely and would yield a 10% plus move. For longer term traders, there appears to be a good chance that a longer term low is being put in here as well. It just reclaimed the 20 day sma on huge volume, although the volume could be misleading as it was just added to the SP600 index. It should challenge the 50 day sma next as it works it's way higher. The stop is pretty easy to figure as well, with a couple different spots below depending on your timeframe. The biggest drawback is that it already moved 5%+ today, so a little backing and filling would be ideal for a better entry.


Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis MBT

Mobile TeleSystems OJSC (ADR) (Public, NYSE:MBT)

MBT came up in one of my scans tonight and I think it has decent potential. MBT had an amazing run from the middle of 2006 through early this year, but it has since fallen into a correction. It broke a trend line I had drawn on the daily chart, which signaled the end of the impulse move higher and the beginning of a correction or consolidation. However, if you pull up a weekly chart, it looks like MBT is bouncing off of a longer term trend line, which also lines up nicely with the theory of an end to the wedge like correction playing out. I always pay more attention to the longer term charts, as the underlying trend has a way of tugging on the shorter timeframes. So while many are looking at MBT as a stock that has topped, I would probably lean to playing this as a buy.



Good Trading,


Joey

for more analysis, check out downtowntrader.com