HHC is a little low on volume for me to trade but I like the sell/short set-up currently on offer. Price has the potential to fall to just below $104.
There is currently strong support at around $100 (as seen from the weekly chart) and, if price approaches this level, we need to we aware of the weekly 200ma (which may come into play as further support).
On the daily chart, since price reached a high of $160, price has fallen below the daily 200ma with a couple of headfakes. These may have breached the 200ma but they also formed a double top chart pattern (at just above the $150 half figure) so the momentum looked like it would continue to the downside.
A bear move did transpire and more recently an inverted cup and handle formed (and was confirmed with yesterdays bar). As there is no major support to stop price until the $100 zone a measured move from the cup and handle could well materialise. This would take price down to approximately $104 - a possible move of more than 1500 points.
If you are happy to trade stocks with such low volume the set-up on HHC looks good.
There is currently strong support at around $100 (as seen from the weekly chart) and, if price approaches this level, we need to we aware of the weekly 200ma (which may come into play as further support).
On the daily chart, since price reached a high of $160, price has fallen below the daily 200ma with a couple of headfakes. These may have breached the 200ma but they also formed a double top chart pattern (at just above the $150 half figure) so the momentum looked like it would continue to the downside.
A bear move did transpire and more recently an inverted cup and handle formed (and was confirmed with yesterdays bar). As there is no major support to stop price until the $100 zone a measured move from the cup and handle could well materialise. This would take price down to approximately $104 - a possible move of more than 1500 points.
If you are happy to trade stocks with such low volume the set-up on HHC looks good.