Trade Ideas for Tomorrow: BAC, GIGM, JDSU, MBI, TOL

In line with my prior expectation, Toll Brothers, Inc. (NYSE:TOL) moved up on Wednesday and is testing key resistance currently. Hence, fresh long position is recommended only if the stock climbs above $21.95 with tight stop-loss at $21.34.

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JDS Uniphase Corporation (NASDAQ:JDSU) had a strong day and broke through its resistance line. The volume confirmed the breakout, as it was greater than average. This is what strong stocks generally do in a rebound : break resistance, hold the breakout and continue higher. The technical chart shows a very strong upward momentum as the stock is above the 50 day moving average with both 200 day and 50 day moving average going up. In addition , RSI and MACD also show very bullish signs.

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There appears to be marginal downside risk on Bank of America Corporation (NYSE:BAC) from prevailing levels. The near-term trend is bullish and a move to the 15-15.24 range appears likely. The overall trend appears really positive.

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The recent reversal in MBIA Inc. (NYSE:MBI) could be a buy signal. MBI traded down today, but not enough to make me stop watching. The volume was weak compared with recent sessions when prices rose, which means traders are not betting on the downside. I think the stock is still in a consolidation range, waiting to make a big move. This stock is going to have a big move and it should be to the upside.

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The short bullish momentum of GigaMedia Limited (NASDAQ:GIGM) continued today. The stock has recovered nicely and can potentially set-up very well for a swing-trade if the stock breaks through the resistance level at $1.30. Technical indicators are becoming more favorable with MACD and Stochastics starting to turn up. There could be good upside in this trade, so watch GIGM closely tomorrow.

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Other stocks to watch:

Cell Therapeutics, Inc. (NASDAQ:CTIC) stock continues to hold $.35 but seems to have stalled here. A break below from this point forward would be very bearish.

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) – I still like the stock for long term prospects.

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.
About Antonio Costa 325 Articles

Antonio Costa is a 35 year old part-time trader who trade stocks in the US market.

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