Working Money magazine.  The investors' magazine.
Traders.com Advantage

INDICATORS LIST


LIST OF TOPICS





Article Archive | Search | Subscribe/Renew | Login | Free Trial | Forgot ID?


PRINT THIS ARTICLE

DOUBLE BOTTOMS


Callaway Golf Hits For The Green

08/21/12 08:46:25 AM
by Koos van der Merwe

We all know that Callaway Golf Co. makes golf clubs, competing with Taylor Made, which is probably the most popular.

Security:   ELY
Position:   Accumulate

Part of the joy of playing golf is the walk through beautiful fairways and the countryside. Golf courses and clubs attract many in spite of the membership fees, but that is the cost of enjoying the course, not to mention the 19th-hole chat with friends and acquaintances. To make the experience even more pleasurable, golf clubs are made and continually improved to allow a player to enjoy a better score. Callaway Golf is one of the leaders and innovators in this field.

FIGURE 1: FOUR-WEEK CHART OF CALLOWAY GOLF
Graphic provided by: OmniTrader.
 
Figure 1 is a four-week chart and shows that the price has made a double bottom, at $4.69. The price could still be falling as suggested by the stochastic RSI, which has fallen below the zero line. However, the vote line, based on the JM internal band strategy, gave a buy signal in February 2010.

FIGURE 2: CALLOWAY GOLF, WEEKLY
Graphic provided by: OmniTrader.
 
Figure 2, a weekly chart, shows that a major double bottom formed at $5.12. The stochastic RSI cycle indicator is falling, not suggesting a buy, but the vote line has given a buy signal based on the red-green strategy long and the red-green long-stop strategy. The price is still below the Verve trailing stop.

FIGURE 3: CALLOWAY GOLF, DAILY
Graphic provided by: OmniTrader.
 
Figure 3, a daily chart, shows that double bottom at $5.20. The price has risen above the Verve trailing stop. The chart also shows candlestick engulfing lines, a positive indicator as well as a vote line buy based on all the strategies, with the exception of the RSI 12-period strategy. The stochastic RSI cycle indicator is starting to suggest weakness ahead, but the ergodic oscillator is still positive.

I would be a buyer of Calloway Golf on any price correction. My target would be the July 9th high of $6.41.




Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

Address: 3256 West 24th Ave
Vancouver, BC
Phone # for sales: 6042634214
E-mail address: petroosp@gmail.com

Click here for more information about our publications!


Comments or Questions? Article Usefulness
5 (most useful)
4
3
2
1 (least useful)

PRINT THIS ARTICLE





S&C Subscription/Renewal




Request Information From Our Sponsors 

DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Traders.com Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2020 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.