In addition to tonight's new candidate readers may want to check out shares of MDCO. Traders have been buying dips on MDCO at its rising 50-dma for several weeks. The stock just bounced off this technical support again today.
NEW BULLISH Plays
Guidewire Software - GWRE - close: 31.26 change: +0.63
Stop Loss: 29.85
Current Gain/Loss: unopened
Entry on September 18 at $ xx.xx
Listed on September 17, 2011
Time Frame: 4 to 8 weeks
Average Daily Volume = 621 thousand
New Positions: Yes, see below
Why We Like It:
GWRE produces software for the property and casualty insurance industry.
After consolidating sideways in a wide range over the past several months it looks like GWRE is breaking out. I do want to warn you that GWRE can be volatile so we want to limit our position size to reduce our risk.
I am suggesting bullish positions now at the open tomorrow. More conservative traders could try and wait and buy a dip near $30.50 instead.
Our multi-week target is $34.50.
Suggested Position: buy GWRE stock @ (the open)
- (or for more adventurous traders, try this option) -
buy the Oct $30 call (GWRE1220j30) current ask $2.60