Nextel Comms - NXTL - close: 28.06 change: +0.30 stop: 26.00
After breaking to new recent highs on Monday with a close at $28.00, we fully expected to see some profit taking in shares of NXTL. While there was some, it was quite limited in nature, with the bears unable even to create a pullback below $27.50. There was a complete lack of directional action over the past two days, but that didn't stop the bulls from launching a buy program right at the close, which allowed the stock to end at $28.06, setting a new recent high. This 2-day consolidation could be a repeat of what we last week with another breakout to new highs being the end result. We're still targeting a move to the top of the February 2001 gap in the $29.50-30.00 area, so aggressive traders might be able to nab a quick gain following a breakout over today's high. More conservative traders will want to wait for a pullback near $27, to confirm support near the top of the channel ($26.90) and the 10-dma ($26.98). Maintain stops at $26 and remember that we want to sell into strength if our $30 target is reached.
Picked on November 26th at $25.27
Change since picked +2.79
Earnings Date 2/18/04 (unconfirmed)
Average Daily Volume = 14.3 mln
Link to Current Quote NXTL
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NVIDIA Corp. - NVDA - close: 23.20 change: -0.55 stop: 21.00
Wasting no time at all, shares of NVDA launched higher last Friday, satisfying our $22.25 trigger right out of the starting gate. Adding to the bullish tone, the stock gapped up on Monday and by early on Tuesday was trading above $24. But with insufficient volume to keep the stock aloft, NVDA posted a doji yesterday and a good-sized red candle today, leaving behind a bearish-looking 3-candle formation. That leads us to expect a continued retracement in the days ahead, which should set up a favorable entry on the successful test of $22 as new-found support. One key factor to the stock's success at finding support at that former resistance will be the action in the overall Semiconductor index (SOX.X), which we'll want to see break decisively through the $510 area that has been solid overhead resistance all week. Maintain stops at $21.
Picked on December 24th at $21.80
Change since picked +1.40
Earnings Date 2/05/04 (unconfirmed)
Average Daily Volume = 5.59 mln
Link to Current Quote NVDA
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