My Power Stocks System tracks the most volatile, liquid candidates for option trading or short-term stock trading each week…but along with those strong names, I uncover the duds of the stock market too. My quantitative system is signaling continued weakness in these stocks for the week ahead.
However, that’s not to say you can’t play put options on these names. I’ll leave it up to you to decide which strike price and month are appropriate for your trading style, but be sure to give yourself enough time to be right. I’ve also included the support and volatility levels my scanner has detected for these stocks. Average volatility in my system is considered to be 20.
- Broadcom (BRCM) showed some fractional gains Monday, with a $27.40 closing price, but my scanner shows a downside trend ahead. The stock has a $34 resistance level and volatility well above average at 28.
- Dell (DELL) closed Monday at $12.87, and shows a resistance level at $14. Not a lot of room there for an upside trade. The stock shows fairly low volatility at 11.
- Microsoft (MSFT) is also showing signs of a downtrend ahead, with a $35 resistance level and a $31.54 close Monday. The stock shows fairly average volatility, rated 22.
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