4 Reasons to Buy a Gun Now That the Election is Here
- Posted by Greg Harmon
- on November 6th, 2012
A gun stock that is. And not just any gun stock. Smith & Wesson, $SWHC, shows at least 4 reasons that it is a buy. The chart below can be used as your guide. First, Friday the stock filled the gap from the last move higher September 7th and has rebounded up. Next it tested support of the rising trend line in red that has been important since November last year and held. Third it cracked the 100 day Simple Moving Average (SMA) that has acted as a reversal point the last 3 times it has happened and is now back above it. Then the Fibonacci Fan Lines measured from the first move
Smith & Wesson, $SWHC
off the base have acted as a channel between the 76.4% Fan Line and a parallel to the 50% Fan Line (about 46%) for the stock to travel in. Moving off the bottom of the channel, it suggests a repeat has legs up above 12. There are other momentum signals as well pointing higher with the Relative Strength Index (RSI) bottoming at the same p[lace it has 3 previous times and turning higher and the Moving Average Convergence Divergence indicator (MACD) improving but they are derivations of price.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
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)
- A Brief History of Trading and the Trading Stocks
- Premium Earnings 2-26-15
- 3 Reasons the Transports May Need to Refuel
- It Was Hard Saying Goodbye to Ruby Tuesday
- Premium Earnings 2-25-15
- Want to Short the US Market, Then Do it Against Germany
- Pancakes, Glue and Technicals – The Story of PerkinsElmer
- Premium Earnings 2-24-15
- Will the Transports Join the Party?
- J. B. Hunt is Driving Higher