Although it is tempting with last week’s rapid drop in the major markets to say “go to cash” this week, we have found a sector using Trade Ideas technology that looks constructive for swing trading. Energy stocks are primarily the only sector that is showing “SCoRe” composite ratings above 90 at this time. Denbury Resources (DNR) has a nice upward trend developing into new 52 week high territory with a “SCoRe” composite rating at 90 and a short float of 19%.
The Trade of the week in DNR is considered to be live above the high of Friday at 6.61. The suggested stop will be at your discretion under the rising 20-day moving average in red. The suggested target will be 10.00. This stock still shows a group of stubborn short sellers that could potentially help drive the price higher towards the target area. As always, use only the amount of shares that you feel comfortable risking under the rising 20 –day moving average in case this trade does not produce.