After its less than stellar top line results and lower than expected revenue growth, RIM shares got hammered. The shares dropped from $83 to the mid sixties in a couple of trading days. Short term, the stock looks quite oversold. Support for the stock lies at $63.50 or its 200 day moving average. Fundamentally, the company is still doing well but failed to meet the high expectations of investors. They are still growing their bottom line and top line at a healthy clip. Despite the new competition in the smart phone market, RIM is expected to be one of the dominant players along with Apple. The sellers need to be taken out before the stock can truly recover. This is a stock to buy on further weakness.
Going into the key fourth quarter holiday season, the stars are aligned for INTC. The economy is improving and businesses are stating that they intend to upgrade their computers to Windows 7. The stock is presently at $19.50, close to its 52 week high of $20.65. INTC is consolidating its recent gains. Support lies at $19.25 or its 50 day moving average. The 200 day moving average is at $16. As long as the NASDAQ holds up and the macro economic picture improves, INTC is set to test $25. During the initial stages of an economic recovery, the best returns are made in cyclical industries. Even if companies have strong cash positions, they are more likely to spend on technology to improve productivity than to add to their staffing numbers.
Because gold did not break key resistance of $1030, traders have been locking in profit on its recent run up in prices. The precious metal is expected to correct back to its 200 day moving average or $920. With the world’s major central banks keeping the financial system flushed with liquidity and the United States likely to continue spending its way out of its economic slump, the price of gold is expected to remain robust. Until their is evidence of better physical demand for gold, the commodity will probably trade in a range of $900 to $1030. The price of gold is driven purely by investor demand. As long as the US dollar trends down, demand for gold will remain robust.
F is looking to break out on the upside. This Big 3 automaker is the only one that did not need a government loan. Their CEO stated that F is expected to return back to profitability in 2011. Fundamentally, they are gaining market share, shoring up their finances and have a pipeline of new promising vehicles. The stock is trading above its 20 day and 50 day moving average. If this level holds, F is poised to retest its 52 week high of $8.86. Downside risk remains at $6.75.
The stock of this large cap energy producer is a trader’s stock. CNQ has enough volatility and liquidity that the active trader seeks. The stock had a strong run to $73. CNQ is currently trading at $66.19, down about 5% on lower oil prices. Looking at the charts, CNQ is set to retest $60 or the 50 day moving average. Strong support lies at the $55 area. The long term trend for the stock remains on the upside. A good time to take profit is when the stock trades in the upper area of its channel. A good level to re-establish a long position on the stock is between $55 and $60. CNQ’s stock price is influenced by the price of oil. The immediate trading range for oil is between $60 and $75.
Intel has their hands in various markets, from mobile devices to lap tops and desk tops. Right now, they all look promising. With the launch of Windows 7, businesses are actually expected to upgrade their PCs. Many have passed on trouble laden Windows Vista. Furthermore, Intel is upping their sales forecasts as the economic recovery is taking hold. The stock is up over 2% to $19.97. Short term resistance lies aqround $21. If this area is broken, the next upside target is $25. Strong support lies at the 50 day moving average around $19.50. Their balance sheets are healthy and their main competitor AMD remains weak. INTC is a stock to buy on dips.
The correction in the stock markets usually seen in September has yet to occur. The S&P 500 is currently around 1073, comfortably above its 50 day and 200 day moving average, or 1,000 and 900 respectively. There is resistance around 1,100. After that, the next major level of resistance is around 1,300. Despite the depth of the rally since March, a major correction is not expected to occur. Most pundits expect the equity markets to pull back to no more than 5% to 10%. There are still plenty of money sitting on the sidelines and too many market participants expecting a fall correction. Technically, the charts on the S&P 500 still looks positive. Fundamentally, earnings need to improve in order to catch up with the recent expansion of the price to earnings multiple.
This former stock market darling is taking a beating. This fertilizer producer is lowering their profit outlook due to lower prices for potash. As a result, POT is down almost 6% to $91.36. The 52 week high low range is $47.54 - $184.88. There is support for the stock at the 200 day moving average or $88. Given the downward momentum, this level is likely to be broken. The next support levels are $78, $73 and $65. For the long term investor, a good entry point would be at $65. With the world’s population still growing, demand for potash will come back. If the stock price continues to drop, expect more talk that Potash Corp. could be a takeover target.
Since March, BAC had surged to the $17 range from its 52 week low of $2.53. If one timed it right, they would have multiplied their initial investment. The question for investors is whether BAC still has any upside left? According to some analysts, BAC can trade back up to the forties within 3 to 4 years. Short term, the stock is looking tired. It is trending down from its recent high in the low $18. Support lies at the 50 day moving average or $15.75. The 200 day moving average is at $11.25. The stock is likely to trade between the $15.50 and $18 range. BAC needs to consolidate its recent gains before it can move up.
AMR stock has broken through a major resistance level of $6. The stock is up almost 15% today to $8.44 on news that the company has successfully raised $2.9 billion to finance its ongoing operations. The 200 day moving is around $5.80, providing major support for the stock. As long as AMR stays above this level, the 50 day moving average will soon cross the 200 day moving average towards the upside. If the $6 support level holds, AMR will test $12. Crucial to maintaining the stock’s upswing include a stronger economy and oil staying near the current level. This is a stock to trade and is not for the buy and hold investor. Airlines are known for being a destroyer of shareholder wealth.
