Tuesday, June 28, 2011

Key levels: CCO.to, FM.to

In the event of a market pullback late this week or early next, I like the following stocks on the short side.

Cameco Corp (CCO.to) will hit resistance at 25.20 and 26.38. The 25.20 level is very close and I don't believe the market has hit a top yet, so I won't be shorting there. 26.38 is a much better level as it has three resistance factors and fits with my anticipated pullback time frame.

First Quantum Minerals (FM.to) may already have hit resistance close to its current levels, but I think the 139.25 and 148 double tops will see good pullbacks as well. Which of the two I actually short will depend on how close the market is to its own resistance levels. This stock has been consolidating for some time so be sure to keep a tight stop in case of a breakout.

I'll be updating this post if I take any one of these trades, so check back or follow me on twitter. I'll be following the markets closely in the next few days and soon we should have a good idea of how the charts will unfold.

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