This week’s choices cover a wide range, from energy to financials, to tech. There is something for everyone.
Road Runner: I recommended Netflix (NFLX) in my first appearance on the Stock Exchange. In late March of this year, it had come off of recent highs and reached the bottom of its 6-month channel. I happily held the position as it appreciated through this spring, selling at some point in late May. Now, I think a re-entry may be appropriate. Let’s review the chart:
The collapse of this stock, beginning in June, took it from the very top of its channel to the very bottom. We’re below the 50-day moving average, but not yet close to the 200-day moving average. Further significant declines are unlikely, and there is significant upside.
J: It is always interesting to revisit a trade we have held before. This stock has also attracted attention from one of our trading experts, Adam H. Grimes?
RR: And does he see what I do?
J: Almost. He notes the decline and potential rebound. He is not quite ready to pull the trigger.
RR: If he had spent some time being chased by that crazy coyote, he would move faster! Beep, beep.
Holmes:Â Range Resources (RRC) declined after a small rally last week. This is typical of stocks providing a good entry opportunity.
The stock showed some life after a patchy decline since mid-April. At its current price of $23.18, it is well below both the 50-day and 200-day averages. I am looking for a rebound to these points. With a PE of 18.6 the stock is also attractive on the fundamentals.
J: It looks like a consistent downtrend, along with the rest of the energy group. The price of oil looks stuck under $47 per barrel.
H: I am not trading oil. Whatever is happening in that market, this stock is showing attractive relative strength.
J: Have you been following the OPEC news?
H: You know well that I do not read news — just charts.
Felix: Micron Technology (MU) is my pick for the week. It’s a good bit sexier than my usual selections, but I have a good reason for it! Look at the chart:
