Rick requested a chart of EMN and an update on CLX, which I posted last week:
Curious about EMN. Looks like it may be approaching a double top?
Also CLX, which I'd requested a week ago. Seems stalled at resistance, but could there be upside (I know, there can ALWAYS be upside)?
I agree that there could be a double top forming on EMN but I think the mid-point of that pattern is too far away for it to be actionable right now. But the resistance of that March high (and maybe even the resistance at $60) is certainly worth keeping an eye on. Personally, I can't get too bearish on any stock that's above both its 50 and 200-day moving averages.
My crystal ball worked pretty well on Clorox. Last week I said I might try to short it if it rose some more (maybe near 60) and made bearish candles. That's almost exactly what it did.
These stocks that are between the 50 and 200 DMAs can often be played either long or short. The 'correct' way to play them may just come down to your time frame. If I wanted to play the upside right here I'd either wait for a breakout above $60 or play a breakout of the little flag pattern it's forming. Personally, I'm slightly biased to the short side on this one.
