Stock Chart RAH

Posted by downtowntrader | 4/09/2009 11:39:00 PM | View Comments

Stock Chart Analysis RAH

Ralcorp Holdings, Inc.(Public, NYSE:RAH)

Ralcorp Holdings, Inc. (NYSE:RAH) is currently in a precarious position. On the chart below, I have labeled some areas of consolidation that have led to lower prices. The first area is where RAH officially topped out. It traded in a very choppy manner, until finally breaking down in November. After a sharp decline, it had a fairly strong rally that ended up taking the shape of a bear flag. It broke down from this consolidation, setting a lower high in the process in late February. It has been trading in a pennant or asymetrical triangle over the past month, and it looks like it broke under that pattern today, despite the markets experiencing a very strong trend day higher.

There is the possibility that RAH will trade in a measure move lower from here, closely matching the decline that led into the pennant from the breakdown area. The one hope the bulls have is that the $47-50 dollar area has held as support in the past. It will be interesting to see if it holds this time.

Good Trading,


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