4 strong stocks for a weak dollar
We’ve been following three technically sound stocks whose strong overseas operations will also benefit if the US dollar stays weak. One is still a good buy, and a fourth stock has just emerged.
- There is further chart support on the daily chart at $73.80-$74, line b, and then at $72.86, which was the recent low
- The daily on-balance volume (OBV) made new lows on Wednesday, which is a negative sign, and the weekly OBV (not shown) confirmed the lows. It could form a positive divergence if the dollar index makes new lows over the next few weeks
- Once above the recent highs at $76.17, there is stronger resistance at $76.90-$77.40
- PKI has stronger support in the $26.60-$27.20 area with the long-term uptrend (line d) at $26.30
- The daily OBV made new highs on Wednesday after breaking through resistance at line e in early May. There is stronger OBV support at line f
- The weekly OBV (not shown) is acting stronger than prices with next upside targets at $29.60 and the 2008 highs
- There is stronger support at $51 and the daily uptrend, line b
- The daily OBV is close to making new highs and does look strong with the weekly OBV also positive
- Once above the recent highs, the next upside targets are in the $59-$60 area
- The daily starc+ band is now just above $82 with further targets in the $83-$84 area
- The daily OBV is leading prices on the upside and looks very strong with the weekly OBV (not shown) also confirming the price action
- There is initial support now in the $80 area with additional support at $78.50
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The solid report comes a month after the retailer closed all of its Canadian operations.
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