Stock Picks And Trade Ideas For Wednesday: Best Buy And Wells Fargo

Chart courtesy of www.stockcharts.com ( click to enlarge )

Best Buy (BBY) - Closed at $28.07, up $3.34. Range was $25.09 to $28.44. The stock closed above its 20-day moving average. Looking at the technical chart, the RSI is now turning back up, and pulling away from the 50 mark. Unfortunately, despite the stock’s positive day, the MACD continued to decline, but I think with more two positive days the stock should cure that. On a short -term basis, the stock is fighting with the 50-day moving average at $28,12, however I expect a breakout at any moment, hold. In addition KD show buy signal as K line has just rose above D line.

Chart courtesy of www.stockcharts.com ( click to enlarge )

Wells Fargo (WFC) - Wells Fargo shares rose today with other financial stocks, gaining more than 18% to $11.81 on heavy volume. From the technical chart the stock looks weak as the stock is still trading below the major moving averages, include the 20-day, 50-day, and 200-day moving average, indicating bear market. However the technical daily chart signals a recovery as the stock seemed to set a bottom at $7.80 in the past week and has since rallied more than 30%. As the stock is approaching the 20 day moving average there could be some profit taking. Although both 50 day and 200 day moving averages are falling, the rising KD shows the stock is probably now in recovery mode. Hold the stock with a stop at $10.22.

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.

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