Trade Ideas: DNDN, ELN, FORM, LRCX

There is an interesting pattern developing in FormFactor, Inc. (NASDAQ:FORM). The stock has been consolidating for several months after a horrific decline last year. The Volume has been gradually building on the right side of the base, and stock is testing again its 50-day moving average on decreasing volume. This is constructive action as sellers are not getting aggressive. If this support can hold again it would be a bullish signal and a move to the top of the range would be realistic. I have this one on a watchlist for a possible buy if it breaks above $11. This is a stock I like for the long term.

(click to enlarge)

Elan Corporation, plc (ADR) (NYSE:ELN) needs to take out resistance at the $8.40 area to continue higher.

(click to enlarge)

Dendreon Corporation (NASDAQ:DNDN) has a mixed technical chart at this point. The stock broke support at $40 early this month and broke below its 13 and 20 day moving averages. Next support is at $38.20. Any close below this level in my view turns this stock medium term bearish. In addition, MACD is weak, heading for zero with falling rally, downside pressure could intensify at any time. So a close below $38.20 would be our next important signal to watch for.

(click to enlarge)

Lam Research Corporation (NASDAQ:LRCX) has been trying to bottom for a couple of days now. There have been some pretty bullish candles forming and it seems to me like it is ready to turn up. If not, at least there is a clear area to put in a stop and scratch the trade. Hold it with a stop loss around its 200-day moving average of $47.35.

(click to enlarge)

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.

Visit: AC Investor Blog

Be the first to comment

Leave a Reply

Your email address will not be published.