Stock Chart Analysis GENZ

Posted by downtowntrader | 3/09/2008 08:11:00 PM | 0 comments »

Stock Chart Analysis GENZ

Genzyme Corporation (Public, NASDAQ:GENZ)

GENZ hit all time highs early this year and then entered a very orderly correction as the markets fell apart. It is near the upper range of the channel it was following through the correction, and could be poised to break out of the trading range. I often try to identify smaller trading ranges within a larger trend to help locate possible turning points. The trend clearly changed when GENZ broke under the blue channel highlighted below (sloppy trend line but you get the idea). An important note to add, is that just because a trend ends, it doesn't mean it will necessarily reverse. More often then not, the trend changes to a sideways trading range. In the case of GENZ, price didn't even make a lower low, so clearly there are still buyers looking to get in. It also has a clear stop loss area defined in the case that the trade doesn't work out.

Good Trading,


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