Stock Picks For Wednesday - Fossil, Yahoo

Chart courtesy of stockcharts ( click to enlarge )

Yahoo (YHOO) - The stock broke and closed above its 200-day moving average on Tuesday (14. 44) for the first time since June of last year. The stock has been trading in a range of $8.94-$28.33 in the past 52 weeks. Looking at the technical daily chart above it shows a new rally is about to begin as K line has just crossed on top over D line as the stock is again back above 200 day moving average. During the month of February, a golden-cross occurred with the convergence of the 13 day moving average back above the 50 day moving average. A more significant golden-cross between the 50 day moving average and the 200 day moving average looks likely in the coming days. Finally, the MACD is in a nice uptrend. All other indicators still point to a bull market. P.S. - There are a lot of people buying calls, betting on Microsoft-Yahoo Merger.

Chart courtesy of stockcharts ( click to enlarge )

Fossil (FOSL) - The stock reversed direction at 20.32 on Tuesday for the fourth time this month. This level is proving to be a strong resistance zone. A strong trend would not be in place unless the stock closes above this resistance. Fresh exposures may be considered on price weakness, with a stop-loss at 18.96 ( 200-day moving average ). A close above 20.32 would be an early indication that the stock is on a new upward move. Watch for high volume and relative strength/weakness before you jump on board.

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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