Looks Ripe for a Short Spec Play
A short-term channel trade is setting up on the daily chart of Praxair (PX), a producer of industrial gas and coatings. The stock has been moving sideways in a $7 consolidation range for the last five months, and this has offered a series of short and long entry points. Upper-end resistance is being tested once again, and the technical indicators reflect an overbought condition.
Praxair (PX) and Air Products and Chemicals (APD) -- Daily Charts Source: StockCharts.com View Chart »During consolidation periods, the best indicators to use are oscillators, such as stochastics and the commodity channel index. The stochastics indicator, a bounded oscillator, has made a bearish crossover above Praxair's overbought level. At the same time, the commodity channel index, an unbounded oscillator, is at a level seen at previous range highs. Volume and money flow improved at the end of last month after an earnings report that met analysts' expectations, even despite lower fourth-quarter guidance. ...173 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
