Looks like a symmetric triangle forming after the recent failed late stage breakout on this over bloated pig of a stock. Since the very late stage breakout failed I would definitely expect this symmetric triangle to break to the down side. Picking a target is tough because this stock is up so much with very little support created along the way. I think the rising 200 dma ($68) will seem fair eventually but obviously now that seems kinda greedy. MOS is almost back up to the upper end of that symmetric triangle for a safe short entry around $108. Today after the market close there was some news of a new fertilizer contract in India so there should be a good opportunity tomorrow near the open to sell MOS. Be sure to set a stop at $110 where major resistance lies.
Showing posts with label Moody Blues. Show all posts
Showing posts with label Moody Blues. Show all posts
Thursday, March 27, 2008
MOS Short Entry @ $108
Looks like a symmetric triangle forming after the recent failed late stage breakout on this over bloated pig of a stock. Since the very late stage breakout failed I would definitely expect this symmetric triangle to break to the down side. Picking a target is tough because this stock is up so much with very little support created along the way. I think the rising 200 dma ($68) will seem fair eventually but obviously now that seems kinda greedy. MOS is almost back up to the upper end of that symmetric triangle for a safe short entry around $108. Today after the market close there was some news of a new fertilizer contract in India so there should be a good opportunity tomorrow near the open to sell MOS. Be sure to set a stop at $110 where major resistance lies.
Tuesday, March 25, 2008
Has student lender Sallie Mae bottomed?
For Sallie Mae (ticker SLM), 2007 was a rough year. The student loan industry ran into a perfect storm of bad conditions and you can see the damage in the leading lenders' stock prices. After a buyout at $60 fell through last year SLM tumbled down roughly 60% in 2007 and has recently been hanging out near $15.
Looking at the chart above you can see that the stock is still in a clear downtrend but there may be signs of a forming bottom. First of all, the stock seems to be trying to hold above $16.19 after breaking below that January low a few times in recent weeks. To me that looks like a failed breakdown of a descending symmetric triangle and you know how much we love failed breaks around here (since they lead to fast moves). The chart also has the look of a double bottom perhaps an eve and eve and the volume pattern is right for this.
Its too early to say if SLM has bottomed or not but I think its close. According to Bulkowski, the double bottom is not confirmed until the price closes above the high between the two bottoms, that would be $23. However, given the significance of $20 as past support/resistance, the 50 dma's proximity and a declining trendline now under $20, I would watch that level for an entry.
Looking at the chart above you can see that the stock is still in a clear downtrend but there may be signs of a forming bottom. First of all, the stock seems to be trying to hold above $16.19 after breaking below that January low a few times in recent weeks. To me that looks like a failed breakdown of a descending symmetric triangle and you know how much we love failed breaks around here (since they lead to fast moves). The chart also has the look of a double bottom perhaps an eve and eve and the volume pattern is right for this.Its too early to say if SLM has bottomed or not but I think its close. According to Bulkowski, the double bottom is not confirmed until the price closes above the high between the two bottoms, that would be $23. However, given the significance of $20 as past support/resistance, the 50 dma's proximity and a declining trendline now under $20, I would watch that level for an entry.
Saturday, March 22, 2008
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