I was looking over the charts this past weekend and noticed one stock that I wanted to bring to your attention. There are two reasons why I think this stock is worth a look.
1. There was a new monthly Trade Triangle signal on June 27th at $48.04.
2. I like the formation. This chart has a "W" formation, which normally occurs at the bottom of a move and signals a reversal. In this case, it would look as though once we close over $48 a share, we could see a quick pop up to $50.
The stock I am referring to is Coca-Cola Enterprises Inc. (NYSE:CCE), traded on the New York stock exchange. This is a large company and has been around for a long time. While not usually considered a hot stock, the formation is undeniable. As with any position, you should always be using money management stops.
Another part of this formation I like is the classic Fibonacci retracement of 60%, that was again tested on June 13th and it held. In addition to having the Trade Triangles in a positive mode, the RSI is also in a positive state. Both of these indicators are showing that this market should be moving higher in the very near term.
Key numbers on the chart:
1. Start of the Fibonacci measurement
2. End of the Fibonacci measurement
3. Classic Fibonacci retracement
4. Pivot point
5. Retest of Fibonacci retracement
6. RSI moves over the 50 line
7. Target zone for CCE at $50
Every success with Coca-Cola Enterprises Inc. (NYSE:CCE).
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
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