NEW YORK (TheStreet) -- Today's top picks are Best Buy (BBY), SeaDrill Limited (SDRL) and Avon Products (AVP).
First pick is Best Buy operates as a multi-national, multi-channel retailer of technology products in the U.S., Canada, China and Mexico.
Best Buy traded positive on Tuesday, closing up 0.94% to $25.79 per share.
Tuesday's range: 24.85 -- 25.79
52 week range: 22.15 -- 44.66
Tuesday's volume: 5,036,431
3 month average volume: 7,718180
Best Buy is a rounded bottom breakout pattern when it closed over the 50-day simple moving average. Best Buy has formed rounded bottom breakouts in the recent past but failed to confirm, and here it is again. It's very important to see confirmation after getting a buy signal from any chart pattern; rounded bottoms are no different.
This chart looks good because it established a bottom, and now is on a slow curve up. This could shape up to be a fry-pan bottom chart pattern, or a J-hook, with the breakout level of about $26.10. There is overhead resistance at $26.10-ish and throughout the gap down levels of $26.83 -- $ 37.30. Target the 200-day simple moving average at $33.36 which is almost 30%. I wouldn't want to see it trade below $23.87, so I'd set my stop in that area. Wait for confirmation on this trade, any positive trading will be a strong buy.
Stay long until you see a sell signal, or a close below the t-line (8 EMA).
Next, we have SeaDrill, an offshore drilling contractor that provides offshore drilling services to the oil and gas industries worldwide.
SeaDrill traded positive on Tuesday, closing up 1.47% to $35.19 per share.
Tuesday's range: 34.83 -- 35.55
52 week range: 32.40 -- 48.09
Tuesday's volume: 4,226,360
3 month average volume: 4,736,360
SeaDrill looks good from a technical standpoint, as it too is a rounded bottom breakout. Shares closed over the 50-day simple moving average yesterday. It also formed a double bottom type pattern over the last month or so. Double bottoms are great because they paint a clear picture of the investor sentiment. Shares trade lower, test an uptrend, retest the lows, and then regain momentum, and the breakout occurs at the current levels. Watch for shares to trade over $35.64 for the breakout. Some traders like to wait for the breakout, while others prefer to get into a trade before the breakout; do as you feel comfortable, and set your stops.
SeaDrill hasn't traded over the 50-day simple moving average this year, and now we're looking for a reversal. Target the 200-day simple moving average at $40.98, which will be a 16.5% move. There is overhead resistance at about $35.56, then as gain at the 100-day simple moving average at $36.90, then again at the gap down levels of $38.45 -- $39.16. I'd set a stop at just below the 20-day simple moving average at about $34.17, as I wouldn't want it to trade below this level, but again, do as you feel comfortable.
Stay long until you see a sell signal, or a close below the t-line.
Next, we have your grandma's favorite, Avon Products, which, of course, manufactures and markets beauty and related products. You may be wearing some of their products now.
Avon traded positive on Tuesday, closing up 1.07% to $15.16 per share.
Tuesday's range: 14.89 - 15.21
52 week range: 14.11 - 24.71
Tuesday's volume: 8,256,553
3 month average volume: 4,317,430
Avon is also a rounded bottom breakout, and has been riding the 50-day simple moving average for about a month, but yesterday it broke away from the 50-day a bit, triggering my interest. Now we're looking for a breakout above near term resistance levels of $15.23. There is overhead resistance at $15.51, $16.75 and $17.15; remember resistance is an area, not an exact price level. If you squint your eyes, stand back a little and look at this chart, there is a triple bottom happening here too, and shares are about to breakout of these level.
Target the 200-day simple moving average at $18.03, which is 18% from yesterday's close. Your grandma would be very pleased that you've gained 18% from Avon. I'd set my stop at $14.44-ish. Stay long until you see a sell signal, or a close below the t-line. AVP has earnings tomorrow, so be careful of that.
Good luck traders!
"Remember that sometimes not getting what you want is a wonderful stroke of luck."
-- Dalai Lama.
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