This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Big Stocks to Trade for Gains This Week

Stocks in this article: RBSWATKMBVODPFE

More importantly, the sideways trading that KMB's been showing us has been orderly: all of the stock's price action has been consolidating in a price pattern called a rectangle. Sideways consolidations aren't something to be too worried about -- instead, they're completely normal, especially after a big move higher. They give investors an opportunity to catch their breath and figure out their next move.

At the top of the rectangle, we've got a resistance level at $87.50, and at the bottom, we've got horizontal support at $82. Essentially, we're waiting for a breakout through one of those prices to give us our trade signal. Typically, rectangles are continuation patterns, which means that they resolve in the same direction as previous price action. For KMB, that makes more upside a likely outcome in November. Either way, it's crucial to wait for the move outside of the channel before putting any money on the line with this stock -- you want current investors to make up their minds about KMB before you do.

Vodafone Group Plc

The last few months have been rough going for shares of UK-based Vodafone Group Plc (VOD). The global mobile communications giant has dropped more than 13.5% in the last quarter, shoved lower as a textbook bearish pattern triggered and sent shares towards support. But now that this stock has caught a bid, there's a buying opportunity again.

A head and shoulders top triggered back in late October when VOD broke through the neckline level at $27.50. After that, shares fell to their nearest strong support level at $24.50, a price level that got pointed out back in the middle of May, the last time VOD tested its "price floor". Now, as with then, shares are bouncing hard off of support. That means that investors looking for an opportunity to buy shares of Vodafone have a lowered risk profile if they pick up shares now.

The broken downtrend in momentum adds some extra evidence to VOD's change in trend. Momentum is a leading indicator of price, so the move to an uptrend in RSI bodes well for Vodafone buyers right here. If you decide to pick up shares here, it makes sense to put a protective stop just on the other side of $24.50.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,390.52 +195.10 1.13%
S&P 500 2,018.05 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs