Stock Picks For Next Week: Ciena, Sirius XM Radio And Capstone Turbine Corporation

Sirius XM Radio (SIRI: 0.4475 -0.0125 -2.72%) has made a sharp recovery from a low of 0.34 on the basis of short-covering. In the short-term, i expect the current reversal in trend to continue. The technical daily chart shows the stock is in a bull market as MACD is on top of signal line K line is on top of D line, both indicating buy. In addition, the stock is on top of 50 day and 200 day moving average showing the stock is in bull market. The chart also shows that there is a limited evidence of downside pressure on the stock, for example on Friday the stock dropped 2.7% on low volume (no selling).This is a clear evidence of the strength of bulls. They are controlling the stock.

Chart courtesy of www.stockcharts.com ( click to enlarge )

Ciena (CIEN: 9.90 -0.43 -4.16%) - Despite seeing a steady declining trend in the last trading sessions of the week, the stock managed to hold on the crucial levels of 9.54, amid some volatility. Since the begining of March the stock has show sign of recover as it has reversed the downward trend and began to go north. Moreover when the Golden Cross was formed in early May, we have been expecting the major rally. However the weak market in June drove the stock down a little bit and delayed the rally. At the moment, I’m still convinced the stock will move up again, due to the fact that it has been falling on low volume with MFI rising.

Chart courtesy of www.stockcharts.com ( click to enlarge )

Capstone Turbine Corporation (CPST: 0.83 0.00 0.00%) - The 50-day moving average at $0.78 is acting as a strong support currently. As long as it doesn’t break down 0.78, the chances of going to 0.98 is always there. The stock has bounced off from the above mentioned levels on three occasions. The daily RSI is also showing a sign of reversal, currently trading above 49. If CPST can go up again to bring K line up then you may want to consider buying the stock as it has pletty of room to go since ROC is at oversold level. Short-term traders can buy the stock in the range of 0.78-0.79 for a target of 0.89. Maintain a stop loss of 0.78 and go long. Increase the position if it closes above 0.85.