Byron-
There appears to be some resistance at the 22 1/4 - 22 1/2 area. Whereas technical indicators suggest CLE is minorly overbought, recent strength suggests it may go on to test that 22 1/2 resistance level. Statistically speaking, there is a greater likelihood of CLE moving up than down from here, since its recent breakthrough of 20 maintained its upward trend and is considered bullish by technicians (of whom many are on WS). There is nothing really to suggest at this point that CLE is topping out . . and upward and downward trends in (relatively) non-volatile stocks like CLE don't easily change overnight without some external impetus. That said, I believe monthly retail sales numbers come out later this week (Th? correct me if I'm wrong), and CLE's response to these numbers will give valuable insight into what WS thinks of CLE at these levels. If CLE moves up on the news, expect a break of 22 1/2 and move onward to 25+.
Analyst's upgrades may spur more upward movement, however, always be wary of upgrades since their true intention may be to produce the demand and liquidity at this level for the brokerage to profitably dump their shares. (So it is worth watching for high volume without subsequent price movement upward)However, CLE's solid fundamentals and growth prospects diminish the likelihood of them being perceived as overvalued in the low 20's.
I was much more confident that CLE would see a nice bump past 20 than anything I just said above. TA's predictive value is greatest in certain specific situations. However, the supply and demand thinking exhibited in the analysis of CLE is useful and relevant for understanding short-term price movements.
CLE is a short-term sell around 19 1/2, the previous resistance of 20 should now become support and a move below 20 to the mid 19's is bearish and suggests weak demand.
My personal expectation is to see CLE meander its way up to the 23-25 level, however, CLE's response to the retail sales numbers may well portend future movement.
Happy Investing!
jason
P.S. All bets are off if the NYSE gets ugly. |
