New Hot Stock Pick: MON – Short (10-19-08)
Source: http://feeds.feedburner.com/~r/RecordPriceBreakoutcom/~3/426178863/Posted on Monday, October 20th, 2008 | In Market Commentary
Contributed by: Steve Warshaw (http://www.recordpricebreakout.com) -
The following is a monthly chart of Monsato, a stock which has been in a long term uptrend, but is now flashing sell signals in momentum, money flow, and trend strength. Look at the incredible bearish divergence in the PPO, which headed sideways during most of MON’s metroic rise.
The DMI is signaling a change in trend. If you are not familiar with using the DMI for spoting reversal, here’s my article.
The target for this trade is between $52.60, and $45.28. Mon is in the materials sector, which along with the S&P 500 is in a strong downtrend. The stop is placed just above the previous fibonacci support level of $100 at $103.
Maximum risk – $23
Maximum reward – $34.72
Risk / Rewad Ratio – .66 to 1.
Maximum profit – 43%
Short Pick – Monsato (MON) – Click To Enlarge
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 About Steve Warshaw (http://www.recordpricebreakout.com)
RecordPriceBreakout was founded by Steve Warshaw in July, 2008. Steve is a full time software engineer and aspiring professional technical analyst. Steve has contributed significantly to the development of several trading software and technical analysis programs including Track and Trade High Finance by Gecko Software. |
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