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RSI


Cross Country Healthcare

11/28/12 08:13:57 AM
by Koos van der Merwe

With the reelection of President Barack Obama and the idea that Obamacare is here to stay, looking at health-care stocks is a must.

Security:   CCRN
Position:   Buy

Cross Country Healthcare is a stock that has fallen badly over the months. From a high of $39.29 in June 2002, it has steadily fallen, reaching a low of $3.85 by September 2011.

FIGURE 1: CCRN, MONTHLY
Graphic provided by: AdvancedGET.
 
Figure 1 is a monthly chart showing how the price fell dramatically from June 2002 to $9.77 by October 2002. The price then rose to $24.16 by November 2006 and then over the following five years fell to $3.85 by September 2011. Since then the price has moved sideways, trading at $4.05, its present price.

FIGURE 2: CCRN, DAILY
Graphic provided by: AdvancedGET.
 
The daily chart in Figure 2 shows price dropping to a low of $3.85 by September 2011. What is interesting is the strong support at the $3.82 to $3.85 price range. With the relative strength index (RSI) suggesting a buy and the resistance at $5.05, a possible buy is likely in the cards.

FIGURE 3: CCRN, DAILY, OMNITRADER
Graphic provided by: Nirvana Systems.
 
My final chart, in Figure 3, is a chart with the vote line suggesting a buy signal at the advisor rating of 69. This is a strong signal, based on the RSI 12-period strategy shown in green below the vote line. The two indicators on the chart, the RSI four-period indicator and the RSI 14-period indicator, are in a bullish trend.

I would be a buyer of Cross Country Healthcare at the present price, but consider selling as the price approaches the resistance line at $5.05.




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

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