Stock Picks: $FN, $QIHU, $SHFL

Fabrinet featured February 19th.  The stock enjoyed three days of strong buying in early February before consolidating at $16. It made a break of $16 in what should have been a continuation of the move, but the rally failed to materialize. A MACD trigger 'sell' has to be noted, but other techincals are firmly in the bullish camp. Remains a long play until there is a break of the 20-day MA and/or $15.51 - whichever is the lowest.


QIHOO 360 Technology operates in the field of mobile security. The stock has been trading within a $30-33 range since the start of 2013.  This range offers a low risk opportunity on a break outside of this range, which based on the prior trend, should be higher. A MACD 'buy' has turned to what looks like a whipsaw 'sell' - a signal which may act as a bear trap, providing further fuel for a drive above $33.  My fundamental view on the stock is available here.


The final stock, Shuffle Entertainments (SHFL) manufactures and distributed casino games.  This stock is shaping a very nice cup-and-handle pattern with handle support at $15.81 (a good place for stops). Like Fabrinet, there is a MACD trigger 'sell' to negotiate. This may suggest a break of $15.81 is on the cards. Should this happen, an aggressive short play with a stop above $16.25 and a target of the 200-day MA could be considered. But the favoured play is an upside break of $16.25. My fundamental take on the stock can be read here.

\



Follow Me on Twitter

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.

JOIN ZIGNALS TODAY - IT'S FREE!

Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq

Archive

Show more