|GDP - A short term short?|
|Written by L.A. Little|
|Saturday, 30 January 2010 16:29|
Goodrich Petroleum Corporation (GDP) engages in the exploration, exploitation, development, and production of oil and natural gas properties. Ed asks if it might be a good short term short given market weakness. Let's take a look.
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The first thing that I see when looking at the weekly chart is that it has already descending into the bottom end of the current range - near support. Unless it breaks out that support area, the price declines have already taken place on this time frame. Now if it breaks $20 with force, then the lows of $15 become a target but for that trade, you have to wait. In fact, for any trade it appears you need to wait on this one.
Here's the daily chart, and though we saw a break lower, it isn't confirmed and again, that's a reason to be cautious if you are thinking of a short. Once this market weakness lessens, this one is most likely going to get a quick bounce back higher. The only trade here is to wait for a bounce or to wait for a break of $20 on volume.
|Last Updated on Tuesday, 02 February 2010 21:15|