Author: Rick Pendergraft, Trades Of The Day

It just hit the lower rail of a six month uptrend channel and the stochastic indicators made a bullish crossover from oversold territory.

In a five month trend channel, we’re seeing a similar setup to January when it rallied nicely over the next few months.

With the stochastic indicators close to oversold territory and making a bullish crossover last night, we’re targeting a 75% potential return by mid-August.

In a nice trend channel since last October, it just hit the lower rail and could now make a bullish move.

It recently hit the upper rail of a trend channel and there’s a secondary layer of resistance with the 50-day moving average just overhead.