Trade Ideas for Tomorrow: DNN, NVDA, RMBS

Last week, I wrote a post that there might be a buying opportunity present in Rambus (NASDAQ:RMBS), as it bounced from its uptrend line support again. Today, the stock broke out above the $21.50 level on huge volume of over 1.75 Million shares. RMBS closed out at 21.85 up 0.67 on the day. The stock showed a lot of strength and I expect to see another round of buying. On the technical side, the chart looks very good here. It looks Bullish with both 20 and 50 daily moving averages going up and MACD on top of 0, RSI in a Bullish area too. In addition, Money flow has trended up well since last week. The daily chart of RMBS suggests a strong confidence in stock, a clear uptrend momentum. Rambus call options were also very active today, particularly the February calls, conveying the right to buy Rambus shares at a fixed $22 price. This company is the frequent subject of patent infringement & anti-trust claim issues. Hynix Semiconductor, Nvidia, Micron tech have had patent infringement suits with Rambus, so please be aware that the share price depends in part of the news that comes to the market, causing generally large fluctuations in the share, so be careful if you’re not familiar with the stock. Honestly speaking, there is a lot of upside potential in this stock, which makes it worth watching for the next few days. Keep watching the stock.

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Denison Mines Corp. (AMEX:DNN) – Despite a nice rally on Monday the stock failed to follow-through and ended the day on a down note. That’s good news for the bears. The $4.22 level is the intermediate support and more conservative traders may want to wait for a breakdown under $4 before initiating positions.

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Nvidia (NASDAQ:NVDA) – As long as the stock holds above $22.22, the trend would be bullish and a move to at least $24-25 would be a distinct possibility. In fact, the stochastics is now approaching oversold but seems unable to reach oversold conditions due to the heavy buying interest on any pull-back. Stay tuned.

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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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