The Play Of The Day
06-14-99, 7:22 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: People Soft (NASDAQ: PSFT)
Stock Fans! I like this stock today for four very big reasons!
- It has established a very tight trading range on heavy volume. In fact over the past four trading days it has averaged over 3.5 million shares, and had a trading range of less then $2.10. On Friday it really tightened it trading range to an even . 50 between the high and low with over 3.1 million shares trading.
- (NASDAQ: PSFT) does not trade very many options on its stock. However it did have 25 contracts written on its June $17.50 Call Options. What really sticks out to me here looking at the putt side I see nothing. That's right Stock Fans! Looking at all contracts on the putt side for June and July I see ZERO volume!
- There has been no real news on the stock!
- (NASDAQ: PSFT) has created a "Handle" chart formation. I will now look for it to finish this very bullish formation with the addition of the "Tea Cup" Witch should take it shares higher.
Buy Area: $16.00
Sell Stop: $15.6250
Target: $18.00 + "could be today?"
(NASDAQ: PSFT) JULY $17.50 CALL OPTIONS (Symbol: PQOGWE) closing price on Friday was $1.00. I will look to by 20 of these options when the option market opens for trading today 15 minutes after the opening bell in New York.
Marketing Services Group INC (NASDAQ: MSGI)
MSGI- This stock has sold down again to under that $25.00 price area. MSGI closed on Friday at $21.8125. MSGI if it can't hold here looks will achieve what is known as a double bottom at $21.00 even. I will look to buy it here as I feel the stock is oversold at current levels and should not break that crucial $21.00 a share it was at on 5-26-99.
Buy Area: $21.0250
Sell Stop: $20.9375
Target: $29.50 (10 days)
STOCKS TO WATCH:
Webtrends (NASDAQ: WEBT) Saw its stock go higher for the eighth straight trading day as it closed at $32.50 on volume very strong volume of 808,800 shares. Some 235,800 shares over its 30 day trading average of 573,000. WEBT may rest today? Then again Stock Fans! It may not. it certainly looks to me as if it is in an uptrend here. I will however look to buy it on any pull backs as it has three strong buys on it, and it is an Internet Stock that makes MONEY!
WEBT has established new support at $31.3750. If WEBT can break through $33.3125 then look for WEBT to run up and out of it's range to north of $37.00. The Key is volume and that new that it does not break its new support area.
Network Associates (NASDAQ: NETA)
This stock bounced off of $13.8750 last Thursday. It held above that on Friday not dropping lower then $14.25. Its chart formation suggests to me it is ready to break out here and test it's 30 day high of $17.50