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.
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