Author: Rick Pendergraft, Trades Of The Day

It appears to have just hit the upper end of its trend line and looks likely to make its next move lower in the coming weeks.

Its stochastic indicators hit oversold territory recently, but made a bullish crossover last night. Similar patterns in June, September, and October preceded nice rallies in the stock.

In a two year downtrend, the weekly stochastic indicators made a bearish crossover this past week.

It just hit the lower rail of its trend channel and looks as though it’s primed for another leg higher.

It could rally 20% like it did the previous two times it hit the lower rail of its trend channel to reach the targeted return.