Registered User
Joined: 12/2/2004
Posts: 1,775
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CCK ramped out of its base to new multi year highs on good earnings a few days ago with terrific volume. I chose not to buy on the signal because price had already made a big move the previous few days, choosing to watch and hoping for a pullback. Price has pulled back for three days now and about 30 minutes ago put in a stand at the old 4 and 9 month resistance (now support) of 27 area and held with a burst of green volume. In with a starter position and tight stop. Even though new multi year highs (a big plus) price is only about 10% above both the 50 and 200-day MA's, so not at all extended beyond a decent entry level imo. CCK is the #1 rated stock in its highly rated industry group of Containers per IBD.
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Registered User
Joined: 7/28/2007
Posts: 118
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fpetry,
Nice entry I think, only 1.31% above what I would consider a buy point of 26.78. Another positive I noticed is that the green BOP is heavy even on the pullback. Volume on the pullback is a little strong but after the huge volume days with a couple of gap ups, I expect a little above average profit taking is taking place. Nice one, Goodluck!
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Registered User
Joined: 12/2/2004
Posts: 1,775
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grizz, I agree with your point about ideal entry at 26.78 and pullback being a bit strong on the volume, but like you say when compared to the most recent heavy up-volume it's all relative and I think of no concern. I would have preferred the pullback a bit deeper but note the tail on the daily bar for 4/17 where that lower level has already been tested. My entry was a half size position so I have two stops currently, one very tight at 26.90, looser at 26.40 which would violate that 4/17 bar. Hope to add more if price moves over 28.
Oh, forgot to mention that I think the 4/17 breakout was a breakout of a 4 mo. cup/handle, sorta sloppy looking, but a cup/handle nonetheless imo. I really like the way the handle drooped in low volume from 4/7 to 4/11, just what you want to see. BTW, it looks like the current pattern was immediately preceded by an adjoining 5 mo. cup/handle that failed and started the current pattern. I think current setup is a stage 1 base per the undercuts of Aug and most recently Jan. What do you think?
Pete
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Registered User
Joined: 7/28/2007
Posts: 118
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fpetry,
I agree this is a stage one base. Not only did it undercut August lows, but it did it during a bear market correction....Either one of those I think qualifies it as a stage one base.
Griz
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