Monday, January 13, 2014

FIVE isn't so alive anymore

I wrote about FIVE last November and said if and when I ever sell the stock, I would report it here. I am doing so today.

The chart has broken trend.


The 200-day moving average effectively represents an ascending trend line and it was recently breached to the downside on high volume. There appears to be support within the $36-$38 range, but since early December the stock has suffered dual high-volume declines, the more recent breaking trend, and my preference is to take the loss and move on.

I still believe in the longer-term story for FIVE and as often happens with gap-down stocks, price could very well revert up to close the gap, getting above $42. But prudence, discipline and risk control will dictate my actions, as always. 

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