Had a few minutes tonight to some scans and look a few charts. Here are two stocks that I will be keeping a close eye on tomorrow should this unrelenting market melt-up continue. I would normally consider DO ( Diamond Offshore ) as a breakout swing trade, but given the markets current overbought conditions, I am only willing to hold my short setups (LSI and PKD ) overnight.
DO – Diamond Offshore
Really like this as a breakout play. It has a tight consolidation just below the resistance level. Ideally this stock will trigger at 79.44 on the back of oil strength and an rallying market. A confirmation of the breakout would be if “DO” was able to break 80.15 and close above that. Only then would I be willing to hold this stock overnight…(maybe!). If this stock does trigger my stop will be at yesterdays close ( 78.75 ) or the LOD ( Low of the Day )…whichever is greater.
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