Monday, March 28, 2011 9:59:12 AM
Hot Stocks To Watch
This past week the major stock market indexes all rebounded sharply higher as if there were nothing in its way to stop it. Geopolitical events in the Middle East and North Africa, the Japanese nuclear crisis, high oil prices, and the European debt problems seem to be here for the long run. However, the stock market market indexes seem to rally further the worst the news gets since the March 16 pivot low. This week we shall focus on three different stocks that can be effected by the worlds problems.
The iPath S&P GSCI Crude Oil Total Return Index ETN (NYSE:OIL) will generally trade higher or lower with the price in the WTI crude futures. Since mid-February the OIL has spiked sharply higher on the back of the Middle East and Northern Africa protests. On February 16, 2011 the OIL was trading as low as $23.10 a share. Since that time it rallied to $28.36 on March 7, 2011. The current price is at $27.90 and the pattern on the charts could be forming a bullish consolidation pattern. At this time the OIL still remains under its recent March 7, 2011 pivot high. Therefore, until the OIL breaks above this high the $28.36 level is still minor daily chart resistance. Should the OIL break out to new highs the $30.00 level would be the next major resistance level on the daily charts.
Sony Corp. (NYSE:SNE) is one of the leading manufactures of electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. The company is based in Tokyo, Japan and has come under pressure after the Japanese Earthquake. The stock has formed a pivot low at $29.00 on March 15, 2011. The stock is currently trading at $32.21 a share which is a minor daily chart resistance level. The next important resistance levels that traders must watch for will be around the $34.00 area and more resistance at $35.25. All of these resistance levels could see pullback for the stock and present excellent trading opportunities.
Last week the rating agency Moody's (NYSE:MCO) downgraded thirty Spanish banks as the European debt crisis continues to grow almost on a daily basis. Banco Santander (NYSE:STD) is one of Spain's largest financial Institutions. This stock was not effected by the major bank downgrade and made a near term pivot low on March 16, 2011 at $10.92 a share. Since that time the Banco Santander stock has rallied higher and is now trading around the $11.94 level. The stock should still have important daily chart resistance around the $12.75 area. If the stock were to rally past this resistance point the next major resistance level for STD stock would be $13.50. Should Banco Santander stock decline or pullback from here the $11.00 level would still be near term daily chart support. Keep a close eye on the levels noted in this report as they will present the opportunity to enter and exit trades at the most optimal price.
This past week the major stock market indexes all rebounded sharply higher as if there were nothing in its way to stop it. Geopolitical events in the Middle East and North Africa, the Japanese nuclear crisis, high oil prices, and the European debt problems seem to be here for the long run. However, the stock market market indexes seem to rally further the worst the news gets since the March 16 pivot low. This week we shall focus on three different stocks that can be effected by the worlds problems.
The iPath S&P GSCI Crude Oil Total Return Index ETN (NYSE:OIL) will generally trade higher or lower with the price in the WTI crude futures. Since mid-February the OIL has spiked sharply higher on the back of the Middle East and Northern Africa protests. On February 16, 2011 the OIL was trading as low as $23.10 a share. Since that time it rallied to $28.36 on March 7, 2011. The current price is at $27.90 and the pattern on the charts could be forming a bullish consolidation pattern. At this time the OIL still remains under its recent March 7, 2011 pivot high. Therefore, until the OIL breaks above this high the $28.36 level is still minor daily chart resistance. Should the OIL break out to new highs the $30.00 level would be the next major resistance level on the daily charts.
Sony Corp. (NYSE:SNE) is one of the leading manufactures of electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. The company is based in Tokyo, Japan and has come under pressure after the Japanese Earthquake. The stock has formed a pivot low at $29.00 on March 15, 2011. The stock is currently trading at $32.21 a share which is a minor daily chart resistance level. The next important resistance levels that traders must watch for will be around the $34.00 area and more resistance at $35.25. All of these resistance levels could see pullback for the stock and present excellent trading opportunities.
Last week the rating agency Moody's (NYSE:MCO) downgraded thirty Spanish banks as the European debt crisis continues to grow almost on a daily basis. Banco Santander (NYSE:STD) is one of Spain's largest financial Institutions. This stock was not effected by the major bank downgrade and made a near term pivot low on March 16, 2011 at $10.92 a share. Since that time the Banco Santander stock has rallied higher and is now trading around the $11.94 level. The stock should still have important daily chart resistance around the $12.75 area. If the stock were to rally past this resistance point the next major resistance level for STD stock would be $13.50. Should Banco Santander stock decline or pullback from here the $11.00 level would still be near term daily chart support. Keep a close eye on the levels noted in this report as they will present the opportunity to enter and exit trades at the most optimal price.
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