Stock Picks For Wednesday: Steven Madden And CardioNet

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

CardioNet (BEAT) - The technical chart shows the stock broke the rising wedge in early April, and this trendline break is holding. There was a small bounce after the break, but the stock remains way below 27. Looking at price action since mid-April, we can see a sharp decline and then a flat consolidation. A break below these consolidation lows would signal a continuation lower and further the downtrend. Conversely, a break above the consolidation high at $21.48 would be bullish and I would then expect more gains. Watch for a move above 21.48 for a bullish action and a move below 19.55 for serious weakness.

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

Steven Madden (SHOO) - Stock broke out to all time highs again. This is generally a hot buy from a technical perspective, however and at this point the stock is too extended for additional positions. The RSI indicator at the top of the chart is showing a high overbought reading. This doesn’t mean that the price cannot go higher, but it is extended. A correction back to the $27-$28 level would not hurt the long term trend at all, in fact, it would shake out weak hands building a stronger base for a more sustainable assault higher. Right now it is way too risky for a long position.

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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