3 Foreign Stocks to Trade (or Not)

Mitsubishi UFJ Financial Group

Nearest Resistance: $5.80
Nearest Support: $5.50
Catalyst: M&A Deal, Technical Setup

$80 billion Japanese bank Mitsubishi UFJ Financial Group (MTU) may be correcting by around 2% today, but zoom out a bit and its price action looks a bit more auspicious. MTU is seeing large volume today following strength in Japan's Nikkei this week. The Japanese index has been showing some significant technical strength for the past few months, and ADR investors are using MTU as a way to get exposure to the hot market.

From a technical standpoint, MTU is currently looking bullish, with an ascending triangle setup showing up in shares in the near-term. Resistance at $5.80 is the price level that needs to be cracked before the pattern signals a buy -- and it's the place I'd recommend investors jump in for the lowest-risk entry.

Cemex SAB de CV

Nearest Resistance: N/A
Nearest Support: $11
Catalyst: New Highs

Cemex (CX) is getting significant attention in today's trading session as shares push through to new mult-year highs. That makes CX yet another foreign name that's getting significant trading attention on the NYSE this afternoon. While it may seem surprising, new highs are often a reason for traders' attention in and of themselves.

Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. For late-to-the-game buyers though, I'd recommend sitting on the sidelines until CX pushes above today's high water mark.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

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