Two Stocks That May Shoot Higher
As the market continues to hold the flat line today, many traders and investors are searching the market for the next big winner. Most stocks have rocketed higher in the last week as the Dow Jones Industrial Average jumped by almost one-thousand points. Here are two possibilities for big gains in the coming days.
The first stock is First Solar, Inc. (NASDAQ:FSLR) . After a run from $40.00 to a recent high of almost $50.00, the stock has pulled back. It is currently trading at $46.20, -1.55 (-3.25%). The key here is to watch the daily chart closely. A 50% retrace is $45.00 per share. In addition, this is the 20 moving average. As long as First Solar stays over the 20 moving average, it is a buy. This is a classic consolidation for a move back to a target of $51.00.
The second stock is slightly more risky, but offers a much higher reward. Diamond Foods, Inc. (NASDAQ:DMND) is currently trading at $28.22, -0.92 (-3.16%). This stock has some accounting issues it is working through. The key attractive feature of this stock is multi faceted. First, it jumped higher last Thursday. Since then, it has consolidated, staying above the recent lows. This could be signaling a bottom. The second factor is the size of the drop. Just months ago the stock was over $96.00 per share. It is definitely oversold. While this does look attractive for a pop in the near future, be aware it carries a lot of risk as well.