Stock Trading Predictions & Technical Analysis: CSR

Saturday, September 19, 2009

CSR - Awaiting a Buy Signal

CSR - WAIT

Someone asked me to do an analysis on CSR, so here it is:

CSR is currently standing at its 50 day MA at $7.46. CSR has strong support at around $7.00, and is now looking to break through som key resistance at approximately $7.75-$8.00. If CSR crosses this resistance level and remains above it (closes at these levels), we would get a BUY signal. Currently the stochastic is already giving us a BUY signal, but I don't consider it enough by itself to take a long position yet. The next resistance level is around $8.40, once over this level, CSR could go as high as $9.60 before seeing some resistance again. If you are looking to take a position into CSR, and feel confident of seeing the share price move higher, I would at least wait until it crosses its first resistance level at around $7.75-$7.80. Remember that for the price to move and remain higher, you would want to see an increase in volume. I think CSR has strong support at $7.00, and I think even if CSR has temporary move up, if it pullsback I don't think it will go lower than $7.00. If it does go below $7.00, I would strongly suggest to SELL. Right now CSR is at the middle of small trading channel, and now you have to wait to see which way it will break. I think that if the market continues to move higher you will most likely see a breakout upwards, this is what I see as the most likely scenario right now. However don't act until you get a clear BUY signal, where it would be considered safer to get in. Don't forget to always have a stop loss order set to protect yourself from a move going against you.

1 comment:

HCSeptember 21, 2009 at 11:19 AM
Thank You Yoel.
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TECHNICAL INDICATORS

BUY SIGNAL: Indicates the possibility of the start of a new up trend or the continuation of the current up trend. This signal may be often given in the early stages of a potential new up trend that was preceded by a down or sideways trend. Such signals do not always succeed and may fail at time.

BUY: Indicates that the current up trend is already in motion and a BUY SIGNAL was already given earlier. A BUY does not necessarily indicate that the stock will continue higher from here, but simply that the stock is trending up. The further into the trend you decide to take a long position, the more risk you have of seeing it reverse back down sooner rather than later.

STRONG BUY SIGNAL: Indicates a stronger, more significant and reliable signal than a BUY SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG BUY: Indicates that the current up trend is already in motion and that STRONG BUY SIGNAL was already given.

SELL SIGNAL: Indicates the possibility of the start of a new down trend or the continuation of the current down trend. This signal may be often given in the early stages of a potential new down trend that was preceded by an up or sideways trend. Such signals do not always succeed and may fail at time.

SELL: Indicates that the current down trend is already in motion and a SELL SIGNAL was already given earlier. A SELL does not necessarily indicate that the stock will continue lower from here, but simply that the stock is trending down. The further into the trend you decide to sell a position, the more risk you have of seeing it reverse back up.

STRONG SELL SIGNAL: Indicates a stronger, more significant and reliable signal than a SELL SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG SELL: Indicates that the current down trend is already in motion and that STRONG SELL SIGNAL was already given.

HOLD: Indicates that traders who already hold this stock, should hold on as long as the trend persists. This signal is usually given during an up trend for which it would be considered too risky to take a long position at this point.

STRONG HOLD: Indicates that the current trend has been in motion for a while and rarely deviated away from the trend. Although the stock may continue higher, there may not be enough potential up side to trigger a BUY SIGNAL. This type of indicator usually means that the stock has very strong support levels which may have been tested but not broken.

WAIT: Usually given during a sideways trend for which we are waiting for a move that would trigger a BUY SIGNAL or SELL SIGNAL. This could also indicate uncertainty and the risk that would be taken if you were to take a long position at the current level. Taking a long position after giving a WAIT indicator is considered a gamble.