Thursday, February 28, 2013

Stock Picks: $LLY, $BEAM, $CVS, $ORLY

Four stocks featured in my latest Fool post here. The technical picture is provided below:

Eli Lilly is held in my investment portfolio. The stock cleared $52.83 on modest volume and saw a pick up in volume as the stock made a confirmation test of $52.83. There is a narrowing rising wedge which - if fulfilled - will break downwards. A breakdown could evolve into a false breakout, but should this happen, look for a defense of the 50-day MA.


Beam is caught in a trading range. This range is additionally bound by the 200-day MA, which is a good place to position an initial stop (on a break).  The next upward push should offer a MACD trigger 'buy' and drive a break of $63 resistance.


CVS/Caremark made its significant break at the start of the year with its push above $49. The stock encountered supply at $52, before entering its current consolidation. The 50-day MA has so far played as support, and this could be used as a launch pad for the next phase of the rally.  However, for this to be true, further losses can't be tolerated.


O'Reilly Automotive enjoyed a significant gap higher on the back of earnings. Volume climbed four-fold as buyers pushed the stock above (and kept it above) $100. The MACD trigger 'sell' may ultimately prove to be a 'bear trap' as price action has been very positive.since the gap higher.




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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.

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