Haircuts, Dieting and Taxes
- Posted by Greg Harmon
- on December 21st, 2011
When you think of trading or investing in a sector you think of similar companies with external influences that are strongly correlated. The Personal Services sector however is one of the strangest sectors around. There are 15 stocks in the sector that have no apparent relationship to each other at all. This is a good example of where you need to do your homework and determine what you are buying. Here is a technical look at three stocks in the sector.
H&R Block, $HRB
H&R Block, $HRB, is trading up towards resistance at 15.75 after making a series of higher lows. The 15.75 resistance combined with the rising 50 day Simple Moving Average (SMA) as support is creating an ascending triangle. Through 15.75 it has resistance at 16 and then room to move higher. The Relative Strength Index (RSI) is bullish and rising. The Moving Average Convergence Divergence (MACD) indicator has been unimportant but may be ready to cross positive. It certainly does not detract from the positive aspects of the chart. This is set up to move higher.
Regis Corporation, $RGS
Regis Corporation, $RGS, is set up to move higher as well. Trending higher off of the Golden Cross (50 day SMA through the 200 day SMA) in late November it has been rising support of the 50 day SMA higher. The RSI is also trending higher and almost in bullish territory and it has a MACD that has crossed positive. It has resistance at 17 followed by 17.40 and then can run to the previous highs at 19.00.
Weight Watchers International, $WTW
Weight Watchers international, $WTW, has been trending lower for 2 months and is now testing support at 57. There is no input on the future direction from the flat MACD while the RSI is bearish and moving sideways. Under 57 there is support at 55 followed by 52.50 and 51 before a large gap lower to 44.57.
Interesting isn’t it that all three of these stocks are in the same sector. Tax Preparation, Haircuts and Diets. Who would have thought?
If you like what you see and want to know how to trade these names sign up for more ideas and deeper analysis using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits feed and on chartly.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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