Markets: Action Packed Plays
As the markets hover around the flat line today on extremely light volume, key stocks are in play and rocking the house. Where is the money being made? Let's talk about it. Research In Motion Limited (NASDAQ:RIMM) is once again in play today as it trades at $55.24, -0.84 (-1.50%). After collapsing sharply lower on earnings on March 25th, the stock slammed into the 200 moving average on the daily chart. This gave it a small bounce for two days. However, the bigger head and shoulder pattern in the stock dictated this would just be a tiny bounce and the stock will ultimately trade much lower. A possible target based off the head and shoulders pattern is $48.00 per share. True to form, the stock has started lower and is now below the 200 moving average. Note the head and shoulders pattern.
Hewlett-Packard Company (NYSE:HPQ) is also weak today, continuing its decline since earnings were released. The stock had a solid bounce over two weeks ago on the market capitulation bottom, but has since started falling again even with the markets moving higher. Hewlett-Packard has solid support at a double bottom level of $40.00 in the short term but it may easily break and head to the master support at $38.00. This $38.00 level smells sweet to smart institutional investors and pro traders and will likely be a major long level.