Two oversold bounces (CTL and WIN) (October 03, 2012)
CTL WIN
I’m Dan Fitzpatrick at StockMarketMentor.com on Wednesday, October 3rd. I want to just go back real quick to CenturyLink ( $CTL CenturyLink, Inc ) and Windstream ( $WIN Windstream Corp ). We covered this a couple days ago, about the likelihood of a bounce, and I mentioned we’re going to probably have a bounce, but I actually just really don’t trust it that much. That doesn’t mean that it’s not a trade that you can take or could take, you know, whatever the case may be. It just means that you’ve got to establish solid support here, you have to establish a clear line in the sand like okay, if it hits here I’m wrong, and that would be yesterday, I think I might have mentioned this yesterday, $39.00, so if the stock falls under $39.00, I mean if it even twitches, you go ahead and close that thing out. Now, after two days of reversal the fact that the stock closed, maybe a little bit in the upper end of the intraday range, but not that much, maybe this has run its course. I would say, if you took this bounce, I would suggest just taking profits or at least raising your stop to just below say $39.50, which would be today’s intraday low. On Windstream ( $WIN Windstream Corp ), similar thing, you get a big pull back to the 50-day moving average, today is your day, today’s the reversal day; so the stock closes above $10.00, we’ll say it’s at $10.00 right? I think this thing is worth a trade to the long side, it sure as heck has been crushed; so if you’re taking this trade buy some tomorrow if it moves above today’s intraday high of $10.08; if it does that then you know that buyers are soaking up even more supply and then you can ride that stock higher as well. Okay, that’s it for this Chart of the Day; members get over to the Strategy Session; and also Option Market Mentor members don’t forget tonight’s Q&A on between 8:00 and 9:00 P.M. Eastern, it ends just before the debate begins. I’ll see you there. Free Chart