Trade Ideas: CXW
Bulls took a breather from battering the bears, leaving markets relatively unchanged as of 3:30pm ET. The Trade Ideas scan was similarly quiet with 8 picks covering a time span of 6 minutes; bullish enough buying, but not overwhelming. Consequently, there were only a handful of stocks breaking the 20 appearance barrier; most recent was Corrections Corp of America (CXW) at 25 appearances (yesterday was Big Brother, today the Prison system - what will tomorrow bring?).
Although fulfilling the requirements of the Trade Ideas scan, the stock remains contained by a horizontal trading channel of $44.49 support and $47.88 resistance - trade the break of resistance, run a stop on a loss of support. The stock has already enjoyed a strong 2006 and the point-n-figure chart target of $38 is pause for concern. The latter (bearish) target would be negated by a move to $50 (which would equate to a new triple top breakout). As for an upside price target, look to $64 - a measured move target.
If you would like to try a full version of the Trade-Ideas software, follow this link for a free 7-day trial.
Trade Ideas
Although fulfilling the requirements of the Trade Ideas scan, the stock remains contained by a horizontal trading channel of $44.49 support and $47.88 resistance - trade the break of resistance, run a stop on a loss of support. The stock has already enjoyed a strong 2006 and the point-n-figure chart target of $38 is pause for concern. The latter (bearish) target would be negated by a move to $50 (which would equate to a new triple top breakout). As for an upside price target, look to $64 - a measured move target.
Corrections Corporation of America engages in the ownership and operation of privatized correctional and detention facilities in the United States. It designs, builds, and manages prisons, jails, and detention facilities, as well as provides inmate residential and prisoner transportation services. The company’s facilities offer various rehabilitation and educational programs, including basic education, religious services, life skills and employment training, and substance abuse treatment. Corrections Corporation also provides healthcare services, including medical, dental, and psychiatric services; food services; and work and recreational programs. It serves federal, state, and local correctional and detention authorities. As of December 31, 2005, the company operated 63 correctional, detention, and juvenile facilities, which included 39 facilities that it owns, with a total design capacity of approximately 70,000 beds in 19 states and the District of Columbia. Corrections Corporation also owned three additional correctional facilities that it leased to third-party operators, as of the above date. The company was founded in 1983 and is headquartered in Nashville, Tennessee.
If you would like to try a full version of the Trade-Ideas software, follow this link for a free 7-day trial.
Trade Ideas
