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.

Follow Me on Twitter

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


Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

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


Show more