Stock Chart FSTR

Posted by downtowntrader | 4/22/2008 10:40:00 PM | 0 comments »

Stock Chart FSTR

L.B. Foster Company (Public, NASDAQ:FSTR)

FSTR's chart is showing a fairly common rectangle base that can also be interpreted as a W bottom or double bottom. While some may say that double bottom's only exist at the end of a downtrend, I prefer to look at what the price action is telling me, and disregard what the pattern is labeled. FSTR's base may be setting up for a reversal of the 1-2-3 correction it began last December, or it could easily be setting up as a continuation base. I prefer to look at this for an upside breakout, because it it close to doing so, and the longer term trend supports it. It looks like it attempted a breakout a couple of weeks ago, but it also has traded a pretty tight range after that refusing to give up too much ground. However, I just realized that FSTR reports earnings on the 24th of April, so that may be the catalyst for which direction it takes. I will not trade this at this point due to upcoming earnings, but I decided to post it anyways, because some readers may actually be holding it already, or some of you may have safer ways of playing it with option strategies.

Good Trading,


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