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by James Kupfer
Shares of East West Bancorp have been in a tight consolidation pattern since August. They may begin breaking out soon.
Position: Hold
James Kupfer
Mr. Kupfer is a market professional and amateur stock market commentator. Disclosure: It is likely that Mr. Kupfer has or will enter a position in any security he writes about.
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East West Consolidation
11/03/08 09:36:04 AMby James Kupfer
Shares of East West Bancorp have been in a tight consolidation pattern since August. They may begin breaking out soon.
Position: Hold
| East West Bancorp has been in a tight trading range since August 2008, when it broke out of its downward-sloping linear regression channel. Since then, it has survived intact while most other US equities have taken massive hits to their share value, especially in September and October. |
| EWBC's main trading range has been between $12 at the low end and $15.50 to $16. The stock also had a spike on September 18-19 due at least in part to the SEC's ban on short-selling of financial stocks. Even including that abnormal movement, the stock still closed below $18. See Figure 1. |
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| FIGURE 1: EWBC, DAILY. Even though stochastics indicate the stock is overbought on a daily basis, any continued strength in the overall market could carry this to the $18 level or higher. |
| Graphic provided by: Wealth-lab. |
| |
| In the last week or so, EWBC has been moving up nicely. On Friday, it closed above the first resistance level. Even though stochastics indicate the stock is overbought on a daily basis, any continued strength in the overall market could carry this to the $18 level or even higher. Given the duration of this basing pattern, this could well be the beginning of a longer-term breakout. This stock is definitely worth watching. |
Mr. Kupfer is a market professional and amateur stock market commentator. Disclosure: It is likely that Mr. Kupfer has or will enter a position in any security he writes about.
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Date: 11/04/08Rank: 4Comment:
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