Stocks This Week: Buy Discovery, Buy Rowan Companies And Short Borg Warner – Forbes

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The coming week is likely to bring rising prices.  There are three stock recommendations, two long and one short.

Discovery Communications A shows a cycle low on October 1 and a high on the 12th. Eight of the last nine buy signals have been profitable. The second graph points to rising relative strength since May and an oversold momentum reading as of Friday’s close. The share price is likely to move to the mid $30 area with $40 as an ultimate target.

Chart 1

The weekly cycle bottoms this week.Cycles Research Investments LLC

Chart 2

The technical picture is bullish.Cycles Research Investments LLC

The Rowan Companies graph reveals a cycle buy signal on October 2. The stock is in an uptrend and relative strength has been strong since mid-August. The stock is due to rise to the low $20 area.

Chart 3

This cycle points to higher prices.Cycles Research Investments LLC

Chart 4

The stock appears poised to advance.Cycles Research Investments LLC

Borg Warner has been a weak stock and a renewed sell signal is pending from October 4 through October 21. The stock price is holding above its last lows, but relative strength, which usually leads, has already hit a new low. On the downside, $35 appears to be a reasonable target.

Chart 5

The cycle points to lower prices.Cycles Research Investments LLC

Chart 6

This is a weak stock.Cycles Research Investments LLC