SHORT HWP, ran up over 20% in the last four days, now showing signs of a top: bearish engulfing candlestick pattern, overbought stochastics w/ crossover, 15% divergence from 20, 50 & 200 days moving averages, stock currently up $1 today which is the midpoint of the last black candle. Good reward/Low risk.
LONGS IR Ingersoll Rand, hanging man candlestick pattern at $46 which followed a hammer pattern on Tuesday. The hanging man at $46 is a 50% retracement from an upward move from $37.50 to $54.00. The company posted strong earnings on April 22. Stochastics are oversold w/ a crossover, stock has diverged significantly from its 50 day moving average. Look for a retest of its high at $54 (unless the bubble bursts of course.)
AAS Amerisource Health Corp., Bullish engulfing pattern at $54.25 which was the midpoint of a logn white candle on September 12th, 1997 and support at a hammer pattern on 12/19/97. Stochastics are oversold and crossover has occurred. Stock has fallen from a high of $64 on March 6th. Target $58 which is an approximately a 50% retracement. If the FTC drops the injunction on the merger with McKessen, this stock will skyrocket. This is a very safe long with all the technicals in good favor. Company posted GREAT earnings on April 28th with revenues increasing 28% !