Chart of the Day - Harry Boxer, TheTechTrader.com
by Harry Boxer, www.TheTechTrader.com
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Today I’m going to examine the short side. We haven’t looked at them for several days. The market could be in a distribution mode and may roll over at any point, but obviously until it does I would caution you on the short side.
CONSOL Energy Inc. (CNX) formed sort of a head and shoulders top in the 45 1/2 zone, broke down in mid-March and has snapped back in a bear-flag looking matter with some poor technicals. This stock could roll over hard and come down to meet lateral price support and a major rising trend line down around 36 for a 9-point move for our next trading target once it gets below 41, my initial short-term trading target.
Fuqi International, Inc. (FUQI) acted miserably since its September high, which followed a big move from 3 to 32, then rolled over hard and got smashed in mid-March on a gap down and has formed a bear wedge since then. It is oversold but the stock has potentially more downside, particularly if the market breaks. I would look for something down around eventually the 8.00 level and then as far as 6.00 potentially.
Global Payments Inc. (GPN) with a long upward trend that was broken with a downside-breakaway gap on low volume in Jan. This stock made lower lows until early March when it snapped back. Big reversal day the beginning of April, and has come back down now and is testing near lateral price support around the 42 1/2-43 zone. If that’s broken we can look for potentially this stock to make lower lows down around 39, and eventually something around 35 potentially.
Scholastic Corporation (SCHL), after a nice uptrend, having seen this stock run from about 9 to the low 30’s, it consolidated, broke down hard a couple weeks ago, and has rallied in a bear-flag fashion with very little response in technicals. This looks like a bear flag with lower levels down around 24 1/2, my initial target, and 23 1/2, my secondary target.
In viewing the shorts, here are a few other’s that are on Harry’s charts today. Abovenet Inc. (ABVT), AEP Industries Inc. (AEPI), American Superconductor (AMSC), Shanda Interactive Entertainment Ltd. (SNDA), Sohu.com Inc. (SOHU).
