` Gary Investing Blog: August 2012


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Friday, August 10, 2012

Aug 10: Two Stocks to Watch: INTC, SIRI

Intel Corporation (NASDAQ: INTC) has recently broken its falling channel since late June with a decent volume. It happens to reverse its trend with a positive MACD crossover. The stocks recently follow closely with Bollinger's upper band with healthy volume. With continuous green closings, I think it is a good idea to add in some positions for short term profit. Next resistance, $27.0 and $28.0. If the stock break through $27.0 with good volume, it is a good opportunity to gain some profit from it.

Sirius XM Radio Inc (NASDAQ:SIRI) has shown after very healthy cup and handle chart pattern after heavy volume breakout and yesterday's drop to the neckline at around $2.40 and today's rebounce. On Balance volume is at almost highest level ever which accommodates the recent action in price. MA50 is about to cross MA200 from below, which is considered as golden bullish crossover. RSI shows an overbought signal, which might pose the stock to drop or stay around the neckline for several trading days. Entry order can be make above $2.50 with a stop order somehow below $2.4. The chart gives a tight and clear stop position, so even you buy the stock now, all you lose is 0.05 per share. Another indicator I have recently love to use is Bollinger Band (so-called B-Band), it seems to be quite accurate for predicting price action when closing prices are around its outer bands. In SIRI, similar situation with INTC. If the price does not fall far from the upper band, the uptrend still enacts.