Compuware Corp (CPWR)
In light of what looks to be a developing sideways pattern in the market I have instead for today a stock to watch. Compuware Corp (CPWR) had featured as a newsletter pick for May 19th, and as a free pick for July 21st. It has risen 25% since May and 9% since mid-July and the current 5-day handle looks a good place to raise the prior stop price. I would also set a free stock alert for a price cross above $11.23 as this should see a run to resistance on the weekly chart:
The chart shows good volume behaviour with rising volume in the advances and falling volume for declines/sideway action. There may be some concern with the lower volume for the push from $9.24 to $11.21 compared to from $6.97 to $10.42 - but a protective stop would provide the necessary protection.
Lovely cup-and-handle on the weekly chart with great relative strength with respect to the S&P:
Point-n-figure chart is still running from the May 16th Double Top Breakout with target of $19.50.
Option buyers can look to the January 2010 $5 strike calls going for $6.80 from the ask. This is a $0.70 time premium with almost double leverage. Compare that to the $0.25 ask price for a $12.50 strike expiring this September.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
The chart shows good volume behaviour with rising volume in the advances and falling volume for declines/sideway action. There may be some concern with the lower volume for the push from $9.24 to $11.21 compared to from $6.97 to $10.42 - but a protective stop would provide the necessary protection.
Lovely cup-and-handle on the weekly chart with great relative strength with respect to the S&P:
Point-n-figure chart is still running from the May 16th Double Top Breakout with target of $19.50.
Option buyers can look to the January 2010 $5 strike calls going for $6.80 from the ask. This is a $0.70 time premium with almost double leverage. Compare that to the $0.25 ask price for a $12.50 strike expiring this September.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
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