Today’s Company Invest pick is student loan giant, Sallie Mae Corporation (SLM). Most stocks are WAY overbought right now in this market that keeps going up despite horrid fundamentals and one bad economic report after another. So we need to choose stocks that have had a sizeable pullback for the best possible trade target.

SLM is part of the financial sector, which, up until today has been battered recently.  At a share price under $11.50 it’s also affordable for the averageinvestor.

COMPANY INVEST TECHNICAL ANALYSIS

1st thing on the chart “A” the slow stochastic is quite bullish and has moved to oversold, out andback, now it’s trending back up again at over 29. Odds are, this time it goes back to 80 again, and the stock will move up with it.

“B” is a 3/10 exponential moving average crossover I like to use sometimes. Notice how good the signals are when the blue line (3) crosses up or down through the red line (10). And tomorrow will likely bring another bullish cross.

“C” the MACD D histogram (blue bars) are definitely showing a reversal and the signal line (black is about to cross above the MACD D line (red).

Company Invest Bottom line: Grab it tomorrow with a stop at 10.89 (right below Tuesday’s low).  It could go to $13 on this quick little run (see green parallel trend lines).