Stock Picks And Trade Ideas For Thursday - Rambus, Level 3 Communications, Braskem

Chart courtesy of stockcharts ( click to enlarge )

Rambus (NASDAQ:RMBS) closed at 8.98. The next resistance is at 9.25 and 9.43 respectively. The technical chart continue to show a bullish bias. The MACD line is pointing up. RSI is also increasing and is now above the 50 level. +DI is above -DI . Another promising sign is the decline that started from 24 February occurred with diminishing volume. Could we potentially head higher this week ? I think so. Looking at the daily chart it appears that the RMBS is forming an inverted head and shoulders pattern with the Neckline at 9.43. This pattern is a bullish one so a rally could happen. Remember, we must follow-through and break the neckline.

Chart courtesy of stockcharts ( click to enlarge )

Level 3 Communications (NASDAQ:LVLT) shares are in a bearish phase and I have to say that the recent downtrend does not appear be complete. Reasonable expectations suggest to me that we might see stock drops to near its 52 week low at $0.57. Technically, the stock is still in very weak market as 200 day moving average is still declining and MACD is still below 0. All other indicators still point to a bear market.

Chart courtesy of stockcharts ( click to enlarge )

Braskem (NYSE:BAK) - Technically in the near term the stock is in a recovery mode. However since stock overall is still weak as the MACD is still below 0 and the stock is back near the 20-day moving average, wait on the sideline before making any investment decision.Go long at any close above the $4.32 area.

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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