The Garbage Trade

• Posted by Greg Harmon
• on October 17th, 2012

Covanta Holdings, $CVA, reported earnings Wednesday night, meeting the street expectations on EPS but light on revenue. I like this stock because it is a good old fashioned business, garbage collection and headquartered about 10 miles from where I grew up in New Jersey. But those are not reasons to buy the stock. What makes it interesting to me is that the stock broke a range between 16.80 and 17.75 during trading Wednesday and has held the bid after reporting, although little has traded. It has a Relative Strength Index (RSI) that is bullish and rising and a Moving Average Convergence Divergence indicator (MACD) that is positive and growing. It is also trading above its

Covanta Holdings, $CVA

50, 100 and 200 day Simple Moving Average’s (SMA). Translation: The technicals support further upside price movement. The target on the break of the channel is a move to 18.70 first and then a Measured Move to 19.20. But glancing at the 3-box reversal Point and Figure chart, it has a much higher price objective of 27 on a triple top breakout. Use the top of the previous channel as a stop in case of a false break out and enjoy the ride.

Dragonfly Capital Views Anniversary Celebration

For a limited time the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $600.

This is 20% off of the standard annual subscription price and nearly 45% off of a rolling monthly membership! Don’t miss this limited opportunity! After October Options Expiration Saturday it reverts back to $750.Sign up here.

Want to learn more about Dragonfly Capital Views?

Dragonfly Capital Views Performance Through September 2012 Expiry

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