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Wednesday, August 15th, 2007 - Evaluating VMC as a short candidate |
Ask Tony Wednesday, August 15th, 2007 by Tony Golan Chief Technical Analyst StockProfit.com™ Question: Hi Tony, What do you think about VMC (Vulcan Materials)? In terms of fundamental analysis, I was thinking about shorting it but can you tell me what you think about it from a technical perspective? Thanks, Benji Tony answers: Hi Benji, It's not perfect, but it's in a long-term down-trend, and therefore shortable. The stop would have to go above 100.71, so this may not be an ideal place to go short from a risk/reward perspective, but not all stocks will give you ideal trade setups. You'll have to do your own risk/reward calculations and decide whether this trade is acceptable to you at this time and at this level. -Tony. |
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