Tuesday, August 08, 2006

Scanning for Potential Long Candidates

The first scan I run when looking for potential long candidates is through stockcharts.com. The criteria is NASDAQ stocks priced between $20 -$100, trading above their 10, 20, and 50 MAs with an average daily volume of at least 1M shares. The second scan I run is through the Trade-Ideas Pro scanner. Here I look for stocks that attempted a three day breakout on high relative volume. I place the results side by side and view the daily charts of those names that pop up on both lists. As you have probably already guessed, tonight's scans did not result in a large number of matches. However, there are a few noteworthy ones to add to tomorrow's watchlist.

RIMM looks like a potential double bottom breakout candidate. It has positive divergence in the RSI and MACD indicators. More volume could move prices up above $67.50.

PAAS has had a nice run here and would be a good long setup on a pullback to $20.

Other names still well positioned to move higher: AKAM, NVDA, GENZ.

N.B. - A free seven day trial to Trade-Ideas Pro is available through the affiliate program by scrolling down the right hand side bar of this blog.


Glenn said...

Thanks for sharing Jamie! I shorted LRCX and am looking for 10 points :)

Jamie said...

Good luck Glenn!