 |
RACK- Trading Plan
|
|
|
The plan is to buy shares of RACK for 2 reasons. Its ALL time low is $11.15 which occurred right after its IPO on 7/8/2005. From there it exploded and peaked at $56 4/7/2006 (9 months). It has now come ALLLL the way down to a new low of $11.25 because of increased competition, managerial shuffling and a slight decrease in revenue. Increase competition is probably the most influential reason for the downturn. There is speculation that it might get a takeover bid and unless it breaks below its all time low, Idont think it is going to go any lower. I plan on buying shares of rack @ $12.15 or better. Friday's close was at $12.09. If it goes up I will add to the position, if it goes down I will buy more at support levels.
Support-
The first support is at $11.50
The MAJOR support is at $11.25 and I might even buy more there with a close stop at 11.05.
Resistance-
The first major resistance level is $13.16. The next is at 15.95. This would be the ideal selling point for almost a 30% gain. |
|
|
|
feed my brain...
About Me
Home
Entrepreneurship
Ideas
Tech
Money
Marketing
Other
