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PLAY > New Plays Sunday, February 18, 2001
New Split Plays   New Candidate Plays   New Momentum Plays
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Plays

None

New Candidate Plays

None

New Momentum Plays

CVS - CVS Corporation $61.59 (+2.30)

CVS Corporation is one of the largest retail drugstore chains in the US with 4,114 retail drugstores across the country. The stock hit a 52-week low of $27.75 on March 8th during the height of the NASDAQ madness. Since then, investors have been moving money into profitable "safety" stocks, such as CVS. On Friday, shares of CVS hit an all-time high of $62.20, representing a 124% gain from the low. Friday's breakout took out the old high from December 29th and we believe that it could move even higher as the NASDAQ continues to search for a bottom. The MACD is positive and the RSI is indicating that CVS has a long way to go before becoming overbought. Going forward, CVS has support at Friday's intra-day low of $60.30 with stronger support at $59.29, the 10-dma. Resistance is currently at the all-time high of $62.20. Heavier resistance may come in at the $65 mark. Traders may consider entry points on a bounce off of $60.30 or a breakout above $62.20 on midday volume of at least 1.4 million shares. We plan to place stops at $57 as downside protection.


Picked on February 18th @ $61.59
Change since picked +0.00
Stop Loss @ $57.00

 
Interactive Chart Quote News Zacks on CVS
 


TX - Texaco Inc $64.90 (+5.76)

Texaco is an integrated global energy company that operates in some 150 countries around the world. The company explores for and produces oil and natural gas, manufactures and markets high-quality fuels and lubricants, operates trading, transportation and distribution facilities and produces power. This weekend we are adding TX to our list of momentum plays because of the stock's strong relative strength. The stock established a new 52-week high on Friday of $65.65 even in light of the fact that the broad markets both finished down more than 90-points. The company was recently given an upgrade to the "recommended purchase" list at Goldman Sachs. Additional good news for TX was the signing of a new deal with Nigeria for natural gas exploration. Nigeria, Africa's top oil producer and OPEC's sixth largest exporter only joined the big players in the natural gas export market in late 1999. If the exploration is successful, TX and other parties involved could stand to profit handsomely. If you like what you've heard so far and are considering opening a new play in TX, here are a few suggestions. Look for the stock to move higher on heavy volume and hit another new high as a possible entry point. Here heavy volume would mean more than 1 million shares traded by 1:00 EST. The stock normally trades about 1.4 million shares per day based on a 3-month average. Friday's new record was achieved on 2.3 million shares. Another opportunity might exist if the stock were to bounce off support at $64.22, the 5-dma, or another support level at $63.45 or $61.98, the 10 & 20-day moving averages. In either event, the volume will be critical when considering a new play. Additional support from the Dow Jones Industrial Average (INDU) and the Oil Service Index (OSX.X) would be helpful as well. We will place a stop loss on this play at $61.88.


Picked on February 18th at $64.90
Change since picked 0.00
Stop Loss at $61.88

 
Interactive Chart Quote News Zacks on TX
 


New Plays Index

 


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