Three Commodity Stocks to Buy on the Dip : FTI, NBL, PSX

Domestic equity indexes continue to float higher in uncharted territory as corporate earnings results have largely beat expectations, giving investors few reasons to cut winning trades amid the euphoria. Although housing market indicators have cooled off a bit in recent weeks, the Fed’s recent reassurance that it wouldn’t taper prematurely has certainly resonated very well with investors; the S&P 500's
(INDEXSP:.INX) sharp rebound following the “tapering scare” that ended in late June is a testament that buyers will step in as long as the Fed lifeline is there.

Amid the ongoing rally on Wall Street, bargain shoppers are in search of trending stocks at attractive levels. As such, below our firm takes a look at three big commodity stocks that are trending higher, but have slipped in the last few trading sessions, thereby offering an attractive opportunity to “buy on the dip” in the near future.

The stocks included here are rated as “buy” candidates for three reasons. First and foremost, each of these companies boasts a market cap upwards of $10 billion along with average daily trading volumes topping the $1 million mark, in an effort to weed out smaller, more volatile, trading prospects. Second, these securities are trading above their 200-day moving averages, thereby implying they are in longer-term uptrends. Lastly, these stocks are also trading below their 5-day moving averages, which makes them attractive for swing traders looking to buy in before they rebound. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. (more)

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