With the downstream Phisix, the search is on for those stocks that is swimming against the current. Scanning the technical signals of the index stocks, two stocks catches my attention - SMC and URC.Let me first feature the chart of SMC. This stock broke free from the downtrendline formed by connecting the highs of July 16 and Oct 2, 2007 but its rise was halted at 46.5. It corrected after that but the decline found support at 42.50.
In entering this stock, compute your risk at line 1 (the level on Monday, April 28, 2008 is 43.63). I would temporarily place reward at 46.5 (its high last Mar 31, 2008). Place stop right below line1. If SMC will break 46.5 adjust trailing stop to 46.5. Pls see the sidebar to see daily updates of Line 1 and trailing stop.
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