Two Stocks That Will Pull Back Next Week
The bears are morphing into bulls and the Greek aid package is solidified. This week, the Dow Jones Industrial Average is up close to 500 points. This move in the market is one of the biggest in a one week period in years. Stocks have gone from being at major low pivot support levels to huge resistance levels. They have gone from oversold to overbought in days. Below are two stocks that are extended and should see a pull back next week.
Caterpillar Inc. (NYSE:CAT) is currently trading at $105.75, +2.39 (+2.31%). The stock has rocketed in the last two weeks from a low of $94.00. Once this stock hits $106.70, it will pull back. The $106.70 level is a double top, pivot high and is major resistance.
International Business Machines Corp. (NYSE:IBM) is trading at $172.18, +1.64 (+0.96%). The major component of the Dow Jones Industrial Average has jumped over $10.00 in the last two weeks. It is quickly approaching its all time high, which will also be a double top. This level is at $173.54. Should it hit this level, the stock should have a multi day pull back and be a great swing trade short.
These stocks have made impressive moves but are extremely extended. Look for them to pull back in the coming week.