Stock Chart CALM

Posted by downtowntrader | 12/10/2009 12:15:00 AM View Comments

Stock Chart Analysis CALM
Cal-Maine Foods, Inc. (Public, NASDAQ:CALM)

CALM is one of the stocks on my watch list tomorrow primarily because it looks like it is attempting to clear a small lateral range it has established over the past few weeks. This small range is part of a larger overall base between $25 and $30 a share. The $30 level is also critical resistance on the longer term weekly charts. One of the other things I like about this chart is that in getting above this small range it is also moving above the largest price volume bar on the chart. These bars show the volume transacted at each price range. In theory, trading above the highest volume bars would put a larger group of market participants in the money. It appears that CALM is on its way to test the upper part of the range, and could be on the verge of a real breakout. Of course its a little early to speculate on that, but even a move to the top of the range could present a decent risk versus reward opportunity.

Good Trading,


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