Domestic equity indexes continue to float higher in uncharted
territory as corporate earnings results have largely beat
expectations, giving investors few reasons to cut winning trades
amid the euphoria. Although housing market indicators have cooled
off a bit in recent weeks, the Fed's recent reassurance that it
wouldn't taper prematurely has certainly resonated very well with
(INDEXSP:.INX) sharp rebound following the "tapering scare" that
ended in late June is a testament that buyers will step in as long
as the Fed lifeline is there.
Amid the ongoing rally on Wall Street, bargain shoppers are in
search of trending stocks at attractive levels. As such, below our
firm takes a look at three big commodity stocks that are trending
higher, but have slipped in the last few trading sessions, thereby
offering an attractive opportunity to "buy on the dip" in the near
The stocks included here are rated as "buy" candidates for three
reasons. First and foremost, each of these companies boasts a
market cap upwards of $10 billion along with average daily trading
volumes topping the $1 million mark, in an effort to weed out
smaller, more volatile, trading prospects. Second, these securities
are trading above their 200-day moving averages, thereby implying
they are in longer-term uptrends. Lastly, these stocks are also
trading below their 5-day moving averages, which makes them
attractive for swing traders looking to buy in before they rebound.
As always, investors of all experience levels are advised to use
stop-loss orders and practice disciplined profit-taking techniques.
FMC Technologies, Inc.
The Houston-based oil services and equipment manufacturer, FMC
Technologies, recently sank below its 50-day moving average.
Nonetheless, this stock remains in a strong uptrend over the past
year and it could soon find support; notice how FTI previously
rebounded off $54 per share in late June. FTI could sink as low as
$49 per share and retest its 200-day moving average, which is why
we recommend utilizing a tight stop-loss below for those looking to
jump right now.
This oil and gas bellwether has been steadily rising over the past
year, managing to predictably rebound off its 50-day moving average
after virtually every pullback aside from the one in mid-April
earlier this year. As such, NBL's price pattern may soon offer a
buying opportunity as the stock approaches its 50-day SMA as well
as support between the $57.50 and $60 levels.
This energy holding company has corrected down to its 200-day
moving average over the last two months. Although frustrating, this
recent downturn is far from steep, perhaps suggesting that some
have been accumulating the stock while it has drifted sideways over
the past few weeks. The $55 level plays a major role for PSX
because it is a key support level that it previously held above in
mid-April 2013, and it also served as resistance for the stock in
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Editor's note: This article by Stoyan Bojinov was originally