Stock Chart Analysis SWY

Stock Chart Analysis SWY

Safeway Inc. (Public, NYSE:SWY)

The indexes are fighting to stay above some support levels, but it's looking like they may be broken on longer term timeframes. While we could find a bottom here, I think the path of least resistance is currently lower. With that in mind I am highlighting a chart of SWY which shows a clear breakdown from a long base. It had a sharp bounce today and could follow through if the markets gap higher tomorrow. I think that may be a gift as it has substantial resistance overhead. Keep in mind that all the traders who bought this in the last year are currently underwater. This is why broken bases offer such stiff resistance, as traders underwater jump at the chance to break even on any bounces. While this is not the most exciting stock to trade, the downside target should be near $25, which with a bounce to the $30's provides a decent potential trade opportunity.

Good Trading,


Joey

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