Stock Picks For Monday: US Airways Group, Origin Agritech, Caterpillar
US Airways Group Inc (NYSE:LCC)
LCC has managed to hold the fort well and staying above the 13,26D MA during last week’s selldown on Dow Jones. $5.97 is tested on 3 occasions within 2 weeks and observed the low volume on the two black candlestick which indicate weakness in the bears. I will look for a rebound in the DJ to go long on this stock should the stock breakthrough $5.97. Also I will set tight stop loss as the general trend is down.
Origin Agritech Limited (NASDAQ:SEED)
One of my favourite penny stocks as well in the past. Double top has formed and neckline $9.59 has broken on Friday. I would look for an opportunity to go short after the rebound reaction at the $9.59 region. It looks as if it is going to rebound on Monday. Take note of the past volatility and the stock could rebound quite fiercely. Short positions should be entered once the rebound fails.
Caterpillar Inc. (NYSE:CAT)
Wait for a rebound to fail to go short on the stock again. I don expect the stock to rebound past the $54.61 as evident from the fail rally 29 Jan to 3 Feb.