Thursday, August 10, 2006

Massey Energy Company NYSE (MEE)

MEE has fallen out of its bearish H&S top and, on a measured move basis, has another 10 points of downside left. However, on July 28th it capitulated and has since tried to rally. It may be forming a bullish flag pattern and, if successful, could attempt to retest its bearish gap resistance just above. If you are currently breaking even on the trade, you need a close below $25.oo to solidify your short and see a resumption of the downtrend. The markets appear very weak at this point so you may get a resolution in your favor as early as tomorrow.

Good luck!


AJ said...

Hi Jamie,
Thanks for covering this stock. 25 seems to be holding up as good support for it. If it doesnt close below it in the next few days, I think I'll have to close it.

TJ said...

You're welcome AJ and good luck!