Trade Ideas: BRCD, NFLX, SOLR

GT Solar International, Inc. (NASDAQ:SOLR) is breaking out !! The stock cleared resistance on heavy volume and looks ready to extend it’s gains this week. However, I would like to point out that everytime it hits the top channel line there is a major correction. Next support lies at $12.78 but any close below this level could have further negative implications for the stock, and a move to $12.30 cannot be ruled ( bottom of the small uptrend channel ). The technical indicators are supporting the bullishness. The MACD is moving up in the positive zone and is above the signal line. The ROC is in the positive zone and RSI is above the 50% level.

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Brocade Communications Systems, Inc. (NASDAQ:BRCD) broke $7.27 on Friday, hitting a high of $7.30. This high became resistance for the next breakout move. There is a chance the stock will consolidate this week, but keep a close eye in case the stock makes it move. Technically, the stock is in a good Bullish moment, with all indicators showing strength, its 50 day and 200 day moving average are going up while MACD is above 0 and %K line is on top of %D line.

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Netflix, Inc. (NASDAQ:NFLX) is showing some signs of exhaustion. The slow stochastic is in the overbought zone, but showing signs of falling. The volume is also declining and that is usually a good indication that we are close to a reversal. In addition, the CCI is also showing a negative divergence as the stock is gradually rallying the CCI is making lower highs and a bearish sign. The stock will stop at some point and the results could be a severe downturn. So be on alert, and be ready to cover your positions if we get a major sell off that triggers a sell signal. My current outlook is neutral. Please note that company insiders are selling in record numbers, once again. I believe this stock is overvalued now.

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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 324 Articles

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

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