| Stock Chart Pattern Setups BMHC DBRN CNQ FAST |
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| Monday, March 20, 2006 |
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Morning Update -BMHC, DBRN, CNQ, FAST
Building Materials Holding Corp. (BMHC)
On the daily chart you can see that it is in a falling wedge reversal pattern. By the way, BMHC just had a stock split. At the end of this week the housing numbers will come out. I believe the housing numbers will be the catalyst to get these housing stocks moving upwards. As you can see the PPO is in a bullish divergence and the RSI and stochastics are bullish. MTH should give us the clues as to which direction BMHC will go.
Fastenal Co. (FAST)
We just sold this stock. I was looking at the chart again and I noticed that it is in a reverse symmetrical triangle. Is it a continuation RST or a reversal RST? If it is a continuation RST, it will get a big stick up and then it will move up the width of the triangle. It does appear to be bull flagging. If it takes out $46.68 and advances on volume then it is in a bull flag breakout. If it reverses to the South it could go all the way to the $32.00 area. This is a possible short for day traders. It will not be added to the portfolio table at this time. It is one of those setups that shows a big move coming.
Canadian Natural Resources (CNQ)
This is a possible set up for momentum traders. On the daily chart it shows that it is in a neutral symmetrical triangle. It may be a failed topping pattern. However, should CNQ break out above the down trend line it will be a long and it will be added to the pattern table. This a a fast mover either short or long and is on the verge of a major move. I am watching this one.
Dress Barn, Inc. (DBRN)
The daily chart of this stock looks very bullish. If it breaks $46.74 it is a buy. All the indicators and oscillators are bullish.
BMHC--CONSOLIDATION MODE
FAST--COULD EXPLODE OR IMPLODE IN THIS TYPE OF PATTERN
CNQ--WATCH TO PLAY THE SHORT SIDE IF IT CRACKS
DBRN--SHORT TERM TRADER WATCH LIST
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