Additional Trading Ideas:
In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:
- a breakout past $34.00 could be a bullish entry point.
IART - a breakout past $40.00 might be a bullish entry point.
NEW BEARISH Plays
Stamps.com Inc. - STMP - close: 20.28 change: -0.50
Stop Loss: 20.65
Current Gain/Loss: unopened
Entry on August xx at $ xx.xx
Listed on August 9, 2011
Time Frame: 3 to 6 weeks
Average Daily Volume = 319 thousand
New Positions: Yes, see below
Why We Like It:
STMP's latest earnings report in late July failed to inspire. Investors punished the stock with a big spike down and a break below support near $22.00. Now the oversold bounce is failing under prior support near $22. STMP looks poised to break new support at $20.00, which could signal a drop toward $18.00 or lower.
Aggressive traders may want to launch bearish positions now or use a trigger at $19.85. I want to see STMP trade under the July 26th low so I am suggesting a trigger at $19.50 instead. While the $18 level could be support we will aim for $17.00.
FYI: The Point & Figure chart for STMP is bearish with an $11 target.
Trigger @ 19.50
Suggested Position: short STMP @ (trigger)
- or -
buy the Sep $20 PUT (STMP1222u20) current ask $1.45