The stock on the spotlight today is MGIC Investment Corp. (MTG), the nation’s largest private mortgage insurer. The stock today surged 9.75% or 73 cents to 8.55 per share at six times average volumn of 6 million shares, after reported its first quarterly profit Tuesday after 11 straight quarters of losses. The company earned second quarter net income of $24.6 million, or 13 cents a share, compared with a loss of $339.8 million, or $2.74 a share, last year. Revenue totaled $406.4 million, down 10.6% from $454.5 million. Net premiums declined $295.3 million, or 10.5%, from $330.4 million. Lets take look at the technical chart in more detail to see if this is the stock worth buying. From a technical perspective, MTG seems to have broken a falling wedge pattern today. This classical pattern often precedes reversals. The falling wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. If you look closely you will also observe positive divergence on MACD histogram to price. Today’s high of $8.72 is resistance for Wednesday’s continuation move. If the market continues to move up, MTG could be a big mover. Keep a close eye on the stock for Wednesday.
Rambus (RMBS) – looking at the technical chart over the past month, we can see a possible Inverted Head & Shoulders pattern forming. This could be a big clue as to where direction heads next. I would not be surprised to see the neckline to be broken soon. However, the stock is still in a downtrend, so it should be considered guilty until proven innocent.
Intel (INTC) broke through a 4-day high, as the stock was able to break through the $21.60 resistance level. The stock looks to have found support near $21 and I expect to see the stock move higher. Watch INTC tomorrow.
Motorola (MOT) closed positive again but is weakening, which is not a surprise based on the stocks upside move the past few sessions. MOT might consolidated again on Wednesday, but you should watch in case it makes a move. Resistance is now at $8.10, which was today’s high. There has been heavy buying in MOT, which is why you want to keep watching the stock for the next upside move.
Royale Energy (ROYL) made a reversal move today with a solid upside volume. Today’s high of $1.87 is resistance for Wednesday’s continuation move. The technical chart shows the stock is due for a possible recovery as %K line is back above %D line showing some positive momentum.
Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.