Stock Chart CPLA

Posted by downtowntrader | 3/22/2009 10:03:00 PM | 0 comments »

Stock Chart Analysis CPLA
Capella Education Company(Public, NASDAQ:CPLA)

Education stocks were one of the hottest sectors after the elections, rallying sharply following President Obama's victory. Recently however, they have been under pressure, under performing the general markets. While some of the leaders still have healthy charts, others like CPLA are starting to show some weakness.

CPLA rallied very sharply from November through early December, and then settled into a lateral consolidation. While it was looking like a bullish continuation pattern, CPLA ended up breaking down from the consolidation. Volume dramatically increased on the break, and it appears that CPLA could be in danger of a deeper correction. Notice the horizontal area near 54 that was holding as support through the past few months. This also coincides with the 200-day moving average. It appears that it is now acting as resistance, and could hold CPLA on any bounces. CPLA tried to bounce after the initial breakdown and that level rebuffed the move. Now CPLA is showing some narrow range doji's signaling some indecision. While CPLA hasn't broken down yet, the weekly chart is still in a pattern of lower lows and lower highs. If CPLA fails to reclaim the 200 day moving average soon, it could really fall apart.

Good Trading,