Stock Picks For Tuesday: Cree And Applied Materials

Chart courtesy of stockcharts (click to enlarge )

Cree (CREE) is sitting under resistance at $31.94 ( 13 dma ). The stock needs to break this resistance or will revisit the $30 area soon. Watch for high volume and relative strength/weakness before you jump on board. The buy point is when price clears the resistance line and volume expands to take the stock higher. The technical daily chart shows that MACD fast line has fallen below slow line which could mean that this stock is losing momentum. Overall still bullish, but negative momentum is on the rise. Stay tuned on CREE.

Chart courtesy of stockcharts (click to enlarge)

Applied Materials (AMAT) is still holding support at $13.25 but at the same time has not bounce very strongly here. A break below this area will likely be bearish for stock, on the other hand a close above $13.66 on heavy volume will launch a rally. Therefore a better time to buy would be to wait for K line to rise back up again above D line or buy stock only if the stock moves above $13.66 with tight stop loss.

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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