A post about buying Post

• Posted by Greg Harmon
• on August 27th, 2015

What a week so far and there is still one more day to go. As we head into the weekend the market looks to have bounced. A solid day Friday will confirm that and those who never looked at their accounts will wonder what all the fuss was about.

As markets get back toward last week levels there are some winners and some big winner as well as some stocks looking to take leadership. In my analysis I have been working with a proprietary scan for upside trades and it had been giving great results until the fall. With the fall it had dropped to 2 names that were both disqualified for being involved with merger talks. But with Thursday’s bounce one that had been on the list for a while popped back on today.

Post Holdings ($POST), makers of Raisin Bran and Honey Bunches of Oats Cereal among other things. The company sounds kind of boring but the stock price has been anything but that. The chart above shows the price break above resistance in June and then hover in a tight consolidation. That ended in the beginning of August as it jumped and started a move higher.

Reaching 66.25 it started to pullback and the market stalled and reversed. But the pullback did not even get below the 20 day SMA before bouncing Thursday. The reversal sets up a target of 75.75. So it is back in the scan list. It is turning back higher. The momentum indicators are turning with the RSI moving back higher and the MACD stopping the decline. And it now has a natural stop loss level near the 20 day SMA and lows from the pullback this week. Time to buy some cereal.

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