Editor's Note:

In addition to tonight's new candidates these stocks caught my eye:

NYX: The NYSE is currently in merger talks with its German rival Deutsche Boerse. I haven't looked at a chart of D. Boerse but technically shares of NYX are bouncing from prior resistance and new support at $34.00. Plus, shares are bouncing from their 50-dma and produced a bullish reversal pattern on Friday.

RTN: This defense stock looks poised to breakout higher from its current consolidation pattern.

XRAY: This stock might be a bullish candidate if it can breakout past $38.00 or the recent high of $38.49.

WCRX: Technically the action in this drug stock has turned bearish. Not only has WCRX formed a bearish double top with the peaks in October and February but it also appears to have made a bearish head-and-shoulders pattern over the last several weeks. Traders might want to target a drop toward the 200-dma.

- James


NEW BULLISH Plays

Bristol Myers Squibb - BMY - close: 26.41 change: +0.15

Stop Loss: 25.75
Target(s): 27.75
Current Gain/Loss: + 0.0%
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Drug stocks used to be considered "safe haven" plays when markets got volatile. It looks like investors could once again be seeking safety in the drug sector. Shares of BMY have been outperforming the past couple of weeks. Shares have actually been consolidating sideways the last few days but currently look poised to breakout higher.

I am suggesting bullish positions now with a stop loss at $25.75. Our target is $27.75 but to be honest with you that is probably too optimistic. I estimate we have about six weeks for this play to work before we have to exit to avoid BMY's earnings report. BMY may not hit our target in six weeks.

FYI: The Point & Figure chart for BMY is bullish with a $43 target.

Suggested Position: buy BMY stock @ current levels

- or -

Buy the June $26 calls (BMY1118F26) current ask $1.26

Annotated chart:

Entry on March 14 at $xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume: 13 million
Listed on March 12th, 2010


NVIDIA Corp. - NVDA - close: 18.05 change: +0.13

Stop Loss: 16.85
Target(s): 19.95, 21.75
Current Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Let me start by warning you that this is a very speculative trade. NVDA was a HUGE winner for the bulls over late summer and early fall. Then the stock exploded higher in January . Shares failed at the $26 level in February. Then when the stock market plunged on Feb. 22nd, shares of NVDA began to see some profit taking and the profit taking hasn't stopped since. The current trend remains down.

If you were going to bet on NVDA seeing an oversold bounce then this is the spot to do it. The $18.00 level was set up to be heavy resistance in the past. Shares blew right through this level in January but now this old resistance could be new support. Plus, NVDA is finding some technical support at its 100-dma, near the $18.00 level.

I am suggesting we buy the stock here, near support at $18.00. The 100-dma is at $17.70 and the low on Friday was $17.66. You could put your stop loss at $17.49 but I'm willing to give NVDA a little bit of room since the market has been a little volatile lately. We will put our stop loss at $16.85. Our upside targets to take profits are at $19.95 and $21.75. Remember to keep your positions small to limit your risk, or buy the call options so you know exactly what your risk is.

- open small bullish positions now -

Suggested Position: buy NVDA stock @ current levels

- or -

Buy the April $20 calls (NVDA1116D20) current ask $0.73

Annotated chart:

Entry on March 14 at $xx.xx
Earnings Date 05/12/11 (unconfirmed)
Average Daily Volume: 35 million
Listed on March 12th, 2010