Event Stocks. Some Winners. 17/1/2011

This isn't a run-down of he biggest winners - but event stocks which did move up well today.

In this case, both look like they have finished a short term up trend, despite the fact that they did have great up-days.

Woolworths: I've been keeping my eye on Woolworths for a long time, looking for an opportune time to buy. We're close (in my opinion) but not today:

1. Today's candle, despite the strong upday, was a hypodermic syringe
2. Today's action took the stock up to an important horizontal resistance level.
3. Daily Stochastic is Overbought - Caution required.
4. Today's reversal candle took place right at the base line of the previous (and very large) Head and Shoulders pattern.

Future action is unclear. I favour a major move upwards after a small decline. But that is just guess work. Until the chart moves above that important horizontal resistance level, this stock is now in Wait-and-See Mode

Macquarie (up +1.3%): The Stock had a great run up today. But the run might have ended.

1. Another stock with a hypodermic syringe candle. That's bearish if tomorrow's action is down.
2. Daily Stochastic is Overbought.
3. The stock remains in a strong uptrend.

Good support lies in the 37-38.5 area.

I'll be looking for a buy-in around those levels.

Good luck

Red