Look to Fixer Upper your Portfolio with Scripps

• Posted by Greg Harmon
• on August 3rd, 2016

Scripps Networks Interactive ($SNI) develops and delivers lifestyle broadcast content around the world. One of their shows on HGTV, Fixer Upper with Chip and Joanna Gaines is constantly replaying on our DVR. If you don’t watch the show perhaps you can just look to the stock to fix up your portfolio.

The chart below shows that the stock ended a long decline in September. It took a long time to decide if it wanted to move higher but finally did in February. It found resistance in April at $67 and fell back. A series of rebounds and the lower lows has created an expanding wedge, or megaphone since April. The last 3 weeks has seen the price consolidate at the top of that wedge.

As it consolidates the Bollinger Bands® are squeezing in. This is often a precursor to a big move. The momentum indicators are bullish. The RSI is rising in the bullish zone and the MACD is trying to move back higher after a level period. A break of this wedge to the upside would give a target to 75. And with over 14% of the float short it has fuel for that kind of move to happen fast. Note that the company reports earnings August 9th.

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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.

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