Hot Stocks For This Week - Sandisk Corp. and American Superconductor

Chart courtesy of stockcharts ( click to enlarge )

Downward bias in American Superconductor (AMSC). The stock broke support of $23.50 Thursday on above average volume. AMSC can continue going down and a drop to the 19-19.50 range appears likely. Intermediate trend remains up, however short term momentum indicators, like MACD, RSI and Stochastics are now in Bearish areas. Although the stock has been on the decline recently due to dropping KD, the stock overall is still in bull market, with 50 day moving average above 200 day moving average. Unless the AMSC can recover above the resistance at $23.50, the technical outlook for the stock will be bearish and we should reduce our exposure. If it can close above this level, then expect more upside. If this happens, American Surperconductor is a good play.

Chart courtesy of stockcharts ( click to enlarge )

Sandisk (SNDK) - After a long up leg that brought prices from the March low of $7.53 to May highs of $16.48, the stock has gained more than 100 percent. The recent pull back is an expected market correction from overbought levels. The stock can go back up as fast as it fell. The technical chart looks positive as 50 day moving average has crossed on top of 200 day moving average around February to form Golden Cross. In addtion, the daily relative strength index (RSI) is rising in the neutral region towards the bullish zone and KD shows positive sign as K line is now back above D line. I expect the stock to move up further until it hits my price target of 14.53 in the upcoming trading sessions.

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.

Subscribe by RSS Subscribe by Email