Boise Cascade Is Building Momentum

Boise Cascade (BCC), an Idaho-based company that manufactures wood-based building materials, has flown relatively under the radar since making its debut on the NYSE earlier this year. Initially, share prices climbed from $26 to highs of nearly $35. This success, however, was short-lived. The momentum shifted at the highs in March, and sellers rushed to the scene. A recovery attempt in April failed to break the prior highs, and shares continued to slide to a low of $22.80 in September.

The nature of the selloff and how the security has reacted at lows, however, is intriguing for the bulls. The selloff itself came in several stages. Three major waves of selling on the daily and weekly time frame had unfolded since Boise Cascade's all-time highs, and two waves of selling surfaced since its April attempt to retake highs. Both are common signs that a trend can be nearing an exhaustion point. Alone, however, this is not enough of a reason to anticipate a reversal. It's here that momentum plays the most important role....427 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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