by Serge Berger | April 16, 2013 1:45 am
Serge Berger is the head trader and investment strategist for The Steady Trader. Sign up for his free weekly newsletter here.
Owens Corning (NYSE:OC) — This industrial firm staged an important technical breakout in early December that ultimately led to a 25% rally over the course of two months. Not coincidentally, the industrial sector of the S&P 500 also broke out of an important area around the same time in December, which is important from a correlation perspective.
Earlier this month, the Industrial SPDR (NYSE:XLI) broke below its uptrend dating back to August. Owens Corning did the same, but then reversed back above the trendline for a handful of daily closes. However, with Monday’s broad market weakness, the stock sliced back below the key uptrend once again, this time likely with more conviction.
Closer up on the daily chart, note that the stock has been developing a series of lower highs and lower lows since its early February top. As the stock rebounded last week, it found resistance right at its 50-day simple moving average, where it left a bearish shooting star, which was then followed by confirmation selling on Monday.
The stock looks ready to continue lower, and the 200-day moving average, currently near the $35 mark, seems to be a good next target. Keep in mind that the company is scheduled to report earnings on April 24.
Source URL: https://investorplace.com/2013/04/trade-of-the-day-owens-corning-nyse-oc/
Short URL: http://invstplc.com/1fzXsjw
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.