Monday, June 2, 2008

USU - Offers An Intermediate Term Shorting Opportunity

I remain bullish on USU long term, however, the stock appears to have completed its first leg higher and is very near a point of collapse.

It is because of this potential that I will be shorting the stock upon the violation of the lower wedge line as shown on the chart.

If you have been long the stock, then it would be prudent to either sell it or buy puts against it to lock in some very nice profits.

The potential for this decline is 50% to 62% of the rally from the lows which translates into a 30% to 46% decline in the stock price. Not a decline that I would hold my position through.

No comments:

Trend Analysis LLC Headline Animator