Instead of analyzing just ONE equity I have decide I would make a list, do a little preliminary research and come up with a couple stocks I'd be watching this week. I ended up coming in with five and wanted to share them with you. (You being the four [generous] of you that will read this post). So without further ado, I present to you my 5 stocks to watch for the week of October 24th, 2016 in no particular order! *crowd goes absolutely banana's*
Stock 1: Weyerhaeuser Co. [WY]
I haven't heard of Weyerhaeuser Co. before yesterday, but here is why I'm paying close attention to it this week. I'm not going to make any moves soon, but in the mean time, the chart could be forming a cup and handle. For those of you that don't know, it is an extremely bullish pattern that typically leads to a breakout. Right now it's at the bottom of the handle so it hasn't formed yet and thus there is no reason to make a move now.
Secondly, (flawless transition) it has formed a very nice ascending triangle. There is resistance along the top and an upward sloping line forming a point. It's hard to say which way it will break, up or down. But, if it breaks above the resistance line with pretty high volume it can indicate a positive pattern. So that's what I am looking at there. Not my favorite of the five, but WY is still something to keep in mind.
Friday, October 28th Market Close Edit: 1. Definitely did not form a cup and handle. It broke below the ascending triangle support line on Wednesday and fell 1.54% today. Overall for this week, -4.15%.
Stock 2: NuStar GP Holdings [NSH]
Here is what I like about NuStar. It is also forming an ascending triangle. Not only is the stock reaching the point, but the chart from stockcharts is pretty solid as well.
The MACD just crossed over the MA(9) while the full stochastic show an already bullish pattern. Over the long term it doesn't look like it has a lot of growth left. The stochastic show it reaching up toward that 80 line which usually indicates overbought or overvalued. There also shows some resistance at around $26.00 [see ascending triangle]. So once again, not my favorite, but something to keep in mind over the short term, or to watch and see if there can be a potential short opportunity.
Monday 4:00pm Edit: For those of you keeping score at home, NSH broke through it's resistance line. Only question is if it can hold tomorrow.
Friday, October 28th Market Close Edit: It didn't hold. It's forming a real nice flat base and could pop later, but this week was a no go. It broke form the resistance, then came back down to the support. I like it again for next week, but this weeks overall, -1.46%.
Stock 3: Sotherly Hotels Inc. [SOHO]
This holding is one of my favorites that I found. So far today [Monday the 24th @ 3:36pm] SOHO is up about 3 cents. Let me explain to you why this one is higher up on my list. First of all, the price of this one is at $5.05 and there is a very strong line of support at $5.00. Earlier this October it got as low as $4.95 and since then has come up to where it is positioned now. While I like that it is coming off the support line, the stochastic that we see is also very bullish.
The bottom graph is where the black line is crossing over the red. **Not only that but there is something I have forgotten to mention before. The numbers along the side, where they say 20, 50, 80 DO mean something. Typically when the stochastic hits 20, the stock is oversold or undervalued. When it's at or around the 80 line it's the opposite; overbought and overvalued. I like that the black line is starting to make the turn and just about touch the red line under the 20 line because that means there is a lot of room for growth. If we look back, the last time the stochastic was this low was back in June and once it turned up, the SOHO grew about 20% (until the black line crossed on the red). That's why I will be keeping a close eye on Sotherly this week.
Friday, October 28th Market Close Edit: It's hovering right under the support line with very low volume the past couple of days. Like my last pitch, I'll be watching this one again next week to see if it can bounce back 8 cents and if the stochastic can cross over as well. Lot of upside potential, but a no go for this week. Overall, -1.99%.
Stock 4: M&T Bank Corporation [MTB]
Originally MTB was my favorite coming in this week. While I was at work I had some time to think over these some more and realized a mistake I made. If we refer back to SOHO when I included the **, it's a key piece of information I had completely forgotten to look at. I'm going to post a screen cap of this chart and explain why it looks so good, and then explain how that mistake comes in to play.
Why it looks good: The MACD [black line] has just crossed over the moving average [red line] in the weekly view. Which is good. The black line in the stochastic just crossed over the red line, which is good. They crossed over within two days of each other which is incredibly bullish as an indicator. The not so good: It is sitting just under a resistance line that has been in place since the beginning of the calendar year. More importantly, the stochastic chart is at 73.50. If you look up at what I explained in my last stock pick and see the ** I have an explanation of why NOT an indication of growth. In summary of the good and the bad....I don't know. Helpful, right? I'm going to keep an eye on it and see if the stock price of MTB breaks through the resistance or if the MACD and/or stochastic slide back down.
Friday, October 28th Market Close Edit: I think this is the only one that didn't end in the red! Patting myself on the back for not sucking on ALL of them. Just most. The MACD crossed and kept going up as well as the stochastic. We have two white soldiers and could be looking at number 3 next week! Overall for the week, +2.66%.
Stock 5: Vertex Pharmaceuticals [VRTX]
Vertex is interesting because its a drug company and they can be dependent on BIG news on their drugs. VRTX has/had a line of support at about $80.00 and today is dropped to $78.73. Similar to NSH, the question for tomorrow and the rest of the week is how quickly, if at all, it can bounce back up to $80 and climb upwards. The stochastic chart shows the black line curling upward and is definitley on my watch list. Also, the MA(50) is getting dangerously close to the MA(200) and if the 20 bounces off the 200 it can also signal a bullish pattern.
So, not much to say about this one besides that I will be watching it day to day and week to week to see if something better develops.
Friday, October 28th Market Close Edit: I lied when I said I was going to watch it all week. I think I looked at it once. I got screwed on this one. It fell below the support line and just kinda kept going. The indicators aren't that great and the support could turn into resistance. Overall, -3.94%.
Overall edit: That sucked. On to next week! Thanks for sticking with me.
~I originally thought my list of stocks to watch this week would be better. Also out much earlier than after market close on Monday. But here we are. So, let me know what you think and continue to check back on this post. I'll make little updates as the week progresses.
No comments:
Post a Comment