Stock Picks For Monday: Alcoa, Bank Of America Corporation And American International Group

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If you look at the technical daily chart above, you see nothing that would make you want to buy AIG (AIG), but if you look a little closer, you will see that AIG closed up Friday trading over 2x normal daily volume, telling us there are buyers right now in the stock. From a near term perspective the most obvious level to watch is right now the $43.40 level. The bulls need to push prices above this level to start making some progress. I’m watching the stock closely on Monday to see if the buying continues.

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Technically, Alcoa (AA) remains in an uptrend channel as price is within the parallel lines. As long as price remains above the trend line, the trend is intact and odds will suggest higher prices. Stochastic Oscillator indicate the stock is becoming oversold in the short-term and will probably bounce rather than keep going down. A significant technical resistance is only at 13.71.

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Bank Of America (BAC) is back on the list, as the stock is setting up for another upside move. The stock was a good winner on Friday, as it received an upgrade with a $25 price target from Bernstein. The stock has resistance at $16.61, which was the previous support. Technicals are currently oversold but remain neutral to bearish signaling sideways to lower prices possible in the near term. Only a close above the resistance will confirm the short term low for the stock. I’m watching BAC on Monday and expect a big move once it breaks resistance.

Other Stocks to Watch :

Today’s candlestick pattern was a Bullish Engulfing

WMT - Wal-Mart Stores Inc
ABT - ABBOTT LABORATORIES
KO - COCA COLA CO
IVZ - INVESCO LTD
SWY - SAFEWAY INC
MYL - Mylan Inc
ALL - ALLSTATE CORP
PLCM - Polycom, Inc.
AMT - AMERICAN TOWER CORP
TIBX - TIBCO Software, Inc.
GFA - Gafisa SA
CWTR - Coldwater Creek, Inc.
TAM - TAM S.A.
LO - Lorillard Inc
WTSLA - Wet Seal, Inc.
ALGN - Align Technology Inc
SOA - Solutia Inc
ELNK - EarthLink, Inc.
YONG - Golden Tan Inc
UFS - Domtar Corp
HEV - Enerl Inc
PWER - Power-One, Inc.

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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