Garmin Ltd (GRMN) has been a very bullish stock for some time now. Recent news that GRMN was going to begin targeting the Asian market by introducing GPS software in five Asian languages helped boost shares a bit, but the monster earnings report is what caused the stock to gap up May 3. This gap up pushed GRMN far away from the uptrend line. The stock has since pulled back a bit and looks as if it may be a decent buy again. The trendline support is coupled with gap support. Gap support will be found at the point that the gap ended since this was a bullish gap. The gap support in this particular case is at 94.00.

Gerdau S.A. (GGB) has pulled back to a very solid uptrend line support level. The trendline has been touched on four occasions prior to this one. That said, there are a few things that concern me with a long position this time around. First, the pullback to the trendline occurred too soon after the recent bounce. That is minor, but a major bearish aspect to the current pullback is the volume spike on the downside move. GGB broke through the uptrend line support on higher than usual volume, which makes taking a long position in this stock very dangerous.  At first glance, this looks like a good set up to buy the stock, but a closer look will give you a different impression.

Andy Swan is co-founder and head trader for DaytradeTeam.com.  To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.