Stock Chart CFL

Stock Chart Analysis CFL

Brink's Home Security Holdings, Inc(Public, NYSE:CFL)

Somehow Brink's Home Security, Inc. (NYSE:CFL) has been flying under my radar despite a pretty good looking chart. Maybe it's because it is a recent IPO or cause the ticker has nothing to do with the name of the company. The IPO market actually has gotten a shot in the arm lately with a couple of other stocks performing well in CYOU and RST.

In looking at CFL, it's a pretty simple setup. CFL settled into a 4 or 5 month consolidation after a volatile first month. Most of the consolidation occured above the closing IPO price, and this level has held as support on the following pullbacks to that price (near $20). After a tight consolidation towards the upper end of the established channel, CFL was able to breakout on nice volume. Traders have shown a hesitancy to support the higher prices as witnesses by the long upper wicks or shadows on the post breakout candles, but CFL has also given up little ground. This is a classic pullback to support trading candidate and it should find support on a pullback to its rising 20-day moving average and breakout area. Of course it may not get there, so any strength should be respected, as this issue obviously has no resistance above $29. This one will be on my watchlist for the coming week, and I will post an entry on twitter if I take it.



Good Trading,

Joey