In the process of creating videos for my new eBook, I came across a killer short pick: Comcast.
Technical Analysis
The first thing I noticed about the daily chart is that today formed a very large bearish engulfing candlestick pattern. Second is that there is huge divergence with the Accumulation / Distribution indicator. Third, there is significant divergence in the RSI. Fourth is that the Williams %r is flashing a new sell signal. Finally, price today broke a recent uptrend line at $17. When you combine a leading indicator such as accumulation / distribution showing divergence with a bearish candlestick pattern, this is a reliable sell / short signal. Finally, the 50 day moving average has acted as strong overhead resistance providing a clear stop with minimal risk.
Current Price – $16.65
Resistance 1 - $15.93
Resistance 2 - $15.27
Target – $13.17
Stop – $17.96 (Current 50 day ma)
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