Stock Chart SGR

Posted by downtowntrader | 1/22/2009 11:43:00 PM | 0 comments »

Stock Chart Analysis SGR

The Shaw Group Inc.(Public, NYSE:SGR)

I wrote an article on high volume breakouts for Investopedia about 10 days ago, and one of the stocks I highlighted was SGR. I decided to follow up with an analysis because the stock has held up well since the article through some market weakness, and continues to consolidate the move I discussed.

SGR was able to clear a nice double bottom early this year and has managed to hold above the neckline for several sessions. It had a nice high volume up day about two weeks ago, and has only retraced about 50% into that candle. These are bullish characteristics, and SGR may be headed for a test of its declining 200 sma ($39.81 not pictured). The 20 and 50 day sma's are now starting to slope upwards, and should support SGR on pullbacks. The nice thing about this chart is that it has a few clear stop loss area's (such as below 1/08 candle) for which to easily measure risk. While I wouldn't be too optimistic of SGR clearing the 200 day sma on its first try, just reaching that area is good for over 40%. Lets see if the markets cooperate.

Good Trading,