Stock Picks And Trade Ideas For Tuesday - C, CIEN, RFMD, BAC, WB

Chart courtesy of stockcharts ( click to enlarge )

Citigroup (C) broke triangle resistance with a surge in volume. All indicators are in favor of an upward price movement. MACD has generated a buy signal and is currently above the 0 line.

Chart courtesy of stockcharts ( click to enlarge )

Wachovia (WB) is part of the financial sector and formed a nice ascending triangle. Upside volume is picking up and a close above $19.50 would be Bullish. Look for a break above this level to fully reverse the medium-term downtrend.

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Bank of America (BAC) broke resistance on expanding volume and this is good for large caps.

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RF Micro Devices (RFMD) surged on the open, but peaked and dropped sharply. The move broke rising wedge support and this signals a continuation of the prior decline. Even though this was a short-term bearish signal, there is some support around $3.20. RSI is also trending lower and momentum is bearish. If the stock is able to sustain above $3.20, then it might go to $3.37 ( 50 DMA ). Support after $3.20 is at 3. The stock is in a downtrend.

Chart courtesy of stockcharts ( click to enlarge )

Ciena (CIEN) is a profitable company and the current ratios (Price/Sale, peg, book, PE) are all very low. I think there is no much space to go much lower from here. Even with the slowdown in the economy, the internet capacity is reaching the limit and more soon then later companies will have to increase its capacity and CIEN is well positioned to gain projects. At the same time, the current price of stock puts Ciena in an attractive position for a possible acquisition.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

Posted in Categories: Contributor, External Research, Stocks, USA.

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