Noone Needs Stamps, But You Might Want Stamps.com

• Posted by Greg Harmon
• on January 7th, 2015

If you ask my partners they will tell you that I think Stamps.com, $STMP, may be the stupidest company in the world. The only people that still use stamps are either your over 70 relatives (flash – that demographic is shrinking), or your children who you are forcing to write thank you notes to those over 70 relatives. You can get the bank to send your bills for free. You email, text or snapchat with your friends. Who needs stamps!

Yet the chart of the stock price for this company looks ready top take off. The chart above shows a Cup and Handle pattern that started in late 2013. As it builds the handle on this weekly chart it is showing some signs that the pullback may be over. The Small body candles are one of them. The declining volume another. A move back higher and this piece of crap concept of a company could target a move to 68. Whether you like stamps or not that would be worth the ride. But the momentum indicators are not so convincing. The RSI is falling, but still bullish, while the MACD is level, and may be starting to roll over.

The daily chart gives technicians another reason to watch. If the low from yesterday holds and the price continues higher then a positive RSI Reversal is also in play. This would put it back on track toward 50. It also gives a logical stop point, or short sale trigger, under 45. Short interest is under 3% so perhaps I am not in the consensus on the macro view of the company.

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