In addition to tonight's new candidate, check out FFIV and MMM.
FFIV has made a very successful oversold bounce right back to resistance. On a purely technical basis the stock just failed at resistance near $130.00 with resistance at its 50-dma, and on top of that it produced a bearish engulfing candlestick pattern today. Very aggressive and nimble traders might want to speculate on a short-term move lower here.
MMM has been showing strength. On a short-term basis MMM looks overbought but a dip or bounce near the $90 area might be a new entry point. The stock could make a run at the $97.00-100.00 zone.
NEW DIRECTIONAL CALL PLAYS
Cognizant Technology - CTSH - close: 76.50 change: +0.12
Stop Loss: 74.45
Target(s): 84.50, 89.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger
Why We Like It:
CTSH has spent the last several weeks trying to breakout higher past resistance in the $76-77 zone. It's getting closer to a successful breakout. Given its long-term up trend a move past $77 could start another leg higher. I am suggesting a trigger to buy calls at $77.55. If triggered our targets are $84.50 and $89.00.
The Point & Figure chart for CTSH is bullish with a $105 target.
Trigger to buy calls @ 77.55
- Suggested Positions -
Buy the March $80 call (CTSH1119C80) current ask $0.85
- or -
Buy the April $80 call (CTSH1116D80) current ask $1.60
Entry on February xxth at $ xx.xx
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on February 15th, 2010