I got a positive signal on NALCO HOLDING CO., symbol (NLC) at 24.2 on 5/13/2008 Price and moving averages:NALCO HOLDING CO., symbol (NLC), has closed above its short time moving average.
The short time moving average is currently above mid-time, and above long time moving averages.
The relationship between price and moving averages is: bullish in short-term, and bullish in mid-long term. Bollinger Bands:NALCO HOLDING CO., symbol (NLC), has closed above the upper band by 125.1%. This combined with the steep uptrend suggests that the upward trend in prices has a good chance of continuing. However, a short-term pull-back inside the bands is likely.
Bollinger Bands are 9.7% narrower than normal.
The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.Levels:We find traditional support at 21.42 and resistance at 23.16. The overall pattern is a ascending wedge. The price is above the 50 Day MA, which is relativelly bullish and gives us a clear support area at 22.2866 on long positions. However, we must remember that we are still in bear territory, and we need to break above 23.792 for this trade to be a real bull trade. We haven't detected any particular candle pattern on this stock.Fundamentals:At this point the P/E ratio of NALCO HOLDING CO. is 25.7895, which compared to the SP500 P/E ratio this quarter of 17.63 makes it relatively expensive. The company is growing, as shown by a PEG (price/earnings growth) of 1.34. As a bonus, it pays a dividend per share of 0.14.
This should be a tradable stock, not to get in love with.
Actually, it should be considered as a short term swing trade.This commentary is not a recommendation to buy or sell. This is a comment about technical levels and relative performance of the stock mentioned.
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Last update : 14-05-2008 15:11
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