This little worm is crawling up the Wall of Worry. Here’s your trade on Corning (GLW) (March 07, 2016)
GLW
I want to look at Glow Worm here, Corning ( NYSE:GLW ). This is a really, really good pattern here. We’ve got a low, low, low. Just like how low can you go? We’ve got, really, a prolonged base that goes back into the summertime, right? Then you can see how this is squeezing. There are so many things that are right about this pattern. First of all resistance here, here, here, here, and there. A 200-day moving average that was part of that resistance and now has been broken through, started last week. This is really, really flat and I like that. I like to see this 50-day moving average close to crossing the 200, but it’s going to take another several days. I like that, because what this is doing is, it’s reflecting a long base, as opposed to a stock that’s just screamed up. It would have been nice if you catch this stock down here, but we’re not there, we’re here.
If the stock had really been moving up higher we would already have a cross of the 50 above the 200. But by the time you get that cross the stock has already gone too far. Here we don’t have that situation. We’ve got a stock that’s finally broken through $19.00 on volume today that’s just now above the 200-day moving average. Now if we stretch out you can see that this has taken a real haircut, it used to be a lot higher. Now that this resistance is broken through, I would look to this to be, I’ll give it a price target, lets say 20.50 to $21.00. That doesn’t seem like a lot but if this goes up to $21.00, that’s 7 percent, not too bad on what I view as a safe trade with a dividend of 2.85 percent. If you zoom out more though, you can certainly envision this stock just continuing to move. Now earnings are not due to be reported until late April, as in so many tech stocks, so I think there’s time for this to have a nice earnings run. By the way, you can check the news on it. There are some real favorable news articles on this as well. So I think this will be a good trade for you. As always, use stops.
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