Cephalon A Choppy-Market Cure
Ben Berentson, 03.08.04, 11:10 AM ET

NEW YORK - John Carter, an analyst at the technical trading has a day trading stock tip and is expecting a choppy market for the rest of the year.

"I'm looking for a choppy first half with an upward bias and choppy second half with downward bias," he says. However, Carter thinks he has found a stock poised to defy the market and post strong gains in the coming months.

The stock? West Chester, Pa.-based biopharmaceutical company Cephalon (nasdaq: CEPH - news - people ). Cephalon's products--Provigil, Gabitril and Actiq--focus on the treatment of sleep disorders, neurological and psychiatric disorders, and pain caused by cancer. The stock currently trades for around $60.50 per share and is up 22% year-to-date.

According to Carter's day trading stock tip, "This is a stock under obvious heavy accumulation," not only because it has traded at extremely heavy volume since its January breakout at $49.50 but also because "even on days when the market is sloppy, it ignores the market and keeps moving up." He adds, "This shows underlying demand for the stock."

Moreover, CEPH's moving averages are perfectly positioned: The short-term 13-day moving average is above the medium-term 20-day moving average, which itself is above the longer-term 50-day moving average. And all of them are still below CEPH's price graph. This configuration shows the continuous upward buying pressure that is pushing the stock up: It is strong in the long term, even stronger in the recent short term but strongest in the present. Carter also notes that this uptrend is confirmed by positive stochastic and moving average convergence-divergence (MACD) readings. He thinks the stock will hit $68 over the next four months, with a rise to $78 possible over the next year. Thanks for that day trading stock tip

Day Trading Stock Tip