Assessing a Pair of Post-Sandy Prospects

The extent of any short-term bounce in the stock market or the longer-term effects of hurricane Sandy remain to be seen, but two stocks in sectors that may benefit from rebuilding efforts are breaking above technical resistance.

Trucking company Swift Transportation (SWFT) spent most of the late summer basing in a channel consolidation while the broader market was in rally mode. In October it broke above channel resistance and traded up to its 200 day moving averge. The stock recently retested the channel top and now looks poised to break above the 200-day average and the 50% retracement of the March high and the August low. Moving average convergence/divergence was in bullish divergence during the consolidation period and continues to track higher and above its centerline. Stochastics bounced off its centerline and Chaikin Money Flow is turning positive. A successful retest of previous resistance is always a positive, often providing firm support and a definitive stop-loss level. SWFT is a buy at current levels with a position size that accommodates a stop under the former resistance, which is now support....142 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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