-
Get your FREE Options Trader’s Guide to Technical Analysis here!
-
If you’re looking for the most accurate way to predict the direction a stock or the market is headed, technical analysis is it.
Of course, no chart pattern is accurate all of the time (which is why technical analysis is more
of an art than a science), but it’s the closest you’re going to get to a sure thing in the stock market.So I’m offering up five technical trades today. Each of these stock’s charts has been screened using some of the basic
technical analysis tools, and they all appear to be good bullish trades.Keep reading to get five stocks that are almost guaranteed to go higher.
-
Get your FREE Options Trader’s Guide to Technical Analysis here!
-
#1 Yum Brands (YUM)
Yum Brands (YUM) is the operator of quick-service restaurants,
including KFC, Pizza Hut, Taco Bell, Long John Silver’s and A&W.YUM appears to have triple-bottomed with reversals
at around $22, twin buy signals from our internal indicator, the Collins-Bollinger Reversal (CBR), and a gold cross in May. Now, with a stochastic buy
signal, YUM is positioned to break out from the bearish resistance line at just over $36 and make a run to new highs. YUM is a long-term buy.Get 10 Tips to Getting Started With Technical
Analysis.Next: Gabelli Global Gold, Natural Resources & Income Trust (GGN)
-
Get your FREE Options Trader’s Guide to Technical Analysis here!
-
#2 Gabelli Global Gold, Natural Resources & Income Trust (GGN)
Gabelli Global Gold, Natural Resources & Income Trust (GGN) is
a non-diversified, closed-end management investment company that offers investors a way to participate in major metals mining stocks. It is one of my
favorite stocks to trade and has provided a steady dividend return.Note the huge rectangle with a bottom at around $12 and a top at $16. This year GGN has traded from the bottom of the rectangle to the top three times,
and is now going for a fourth run at $16. This has been a nice, predictable trade — especially for a stock with a dividend yield of close to 12%, which
is payable monthly.Check out OptionsZone.com’s Technical Analysis 101 section.
-
Get your FREE Options Trader’s Guide to Technical Analysis here!
-
#3 iShares MSCI Emerging Markets Index Fund (EEM)
The iShares MSCI Emerging Markets Index Fund (EEM), which is designed
to measure equity market performance in the global emerging markets, contains a number of the bullish technical characteristics.On June 29, with the stock trading above $32, I said, "Note
the major breakout from the triple-top, which
became a bullish cup-and-handle, the gold
cross, a CBR buy signal, and Moving Average
Convergence/Divergence (MACD) turning and near a buy signal. The target is close to its 2008 high of $50."Since then, this ETF executed a breakaway gap and headed to new highs, so I’m sticking with my $50 target.
-
Get your FREE Options Trader’s Guide to Technical Analysis here!
-
#4 Intel Corp. (INTC)
Intel Corp. (INTC) entered a bear market in September 2000, when
it was trading for more than $75 per share, and bottomed out at less than $17 in early 2006. From July 2006 to December 2007, it recovered to $28-plus
before succumbing to selling, which eventually drove it to $12.On March 13, with the stock at about $13, I said, "INTC
appears to have formed a solid base at $12, but in order to break from the base it must close above the downtrend and yesterday’s [March 12] high of $14.60.
If it breaks out, the initial target is $18, but the trend will have changed to intermediate up, and that could attract more long-term buying."On June 10, at $16.45, I said, "Intel has not
only driven above $14.60, but it also established a base above its 200-day moving average, flashed a CBR buy signal, and completed a gold cross — all
signs of a long-term change in trend. Our trading target is revised upward to $22."The enormous breakout gap at $16.89 to $17.72 could be filled on a pullback, but the internal strength is very high, so I’m revising my long-term target
to $24 to $26.
-
Get your FREE Options Trader’s Guide to Technical Analysis here!
-
#5 Abbott Laboratories (ABT)
Health care company Abbott Laboratories (ABT) has been in a bull
market for more than 20 years, however you would have to go to its monthly long-term
chart to see that. ABT is still in a correction down (within its own bull market) with just a couple of positive technical signals on the daily chart.Note the CBR buy signal and a recent buy signal from the stochastic. But also note the CBR buy in November 2008, which signaled a trade but did not
change the overall downtrend. Fundamental analysts like ABT, the stock is in a long-term bull market, and S&P has it on their "Power Picks" buy
list. Now may be the time to buy and hope that the near-term technicals catch up later.To learn more about how to profit using technical analysis, see:
- 10 Tips to Getting Started With Technical
Analysis - Chart Your Way to a Lifetime of Profits
- Using the Relative
Strength Index to Sell at the Right Time
Nick Atkeson and Andrew Houghton are two hedge fund pros who give you the on-the-ground market intelligence that
separates the pros from the pigeons. Let them show you how to double your money twice each month…even in this tough market. - 10 Tips to Getting Started With Technical