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Technical Trading Alert
Tony Golan
Chief Technical Analyst
StockProfit.com™
 Zoom
Compuware Corporation (CPWR) is starting a strong new long-term up-trend. The stock is making higher highs and higher lows above a rising 200-day moving average (the red line in the chart above). Relative Strength Differential (RSD), our proprietary indicator for selecting super-strong stocks (the green histogram on the above chart), has just crossed above the 25% threshold line, indicating CPWR is now outperforming the S&P 500 by a margin wide enough to be considered as a candidate for a buy.
CPWR started the current up-trend when it hit 7.33 in late April, marked as point 1 on the chart. From there, CPWR rallied to a high of 10.42 in early June, labeled as point 2 on the chart. CPWR pulled back, made a higher low, and turned back up. On Wednesday, point 3 on the chart, CPWR rallied to a new high for the current up-trend with a white candlestick and above-average, rising volume, and is now just below a new 52-week high.
At a new high, this setup is good for a daytrade only. Daytraders would want to buy CPWR only when it goes .02 above Wednesday's high, but not if it gaps up or triggers in the first 30 minutes.
Therefore, if CPWR doesn't go above 10.60 before 10am EST Thursday morning, place an order to buy CPWR at 10.60 Stop Day. Then, as soon as your order is filled, immediately place a stop order to sell CPWR .03 below whatever the low of the day is at the time the order triggers. Then, if the stock continues to rally throughout the day, keep raising your GTC sell-stop until the stock gets sold automatically or exit your position at the close.
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Disclaimer: Copyright© 2008 StockProfit. All rights reserved. StockProfit is an independent electronic publication providing information on select public companies. StockProfit is not a registered investment advisor or broker-dealer. There is a risk of loss in all of trading. Past performance is no indication nor guarantee of future results. The information contained herein is believed to be accurate.This update is provided as an information service only, and the statements and opinions in this update should not be construed as an offer or solicitation to buy or sell any security. In no event shall StockProfit and/or its publisher, Pan American Relations, Inc. or any of its employees or affiliates, be liable for any direct, incidental, consequential, indirect or punitive damages whatsoever arising out of the use of the Information, or for any errors or omissions in the content thereof, including, but not limited to, from any investment loss, damage or expense incurred by any investor resulting from the Information, or from the purchase or sale of any profiled company or any company which we make commentary. We recommend using good-'till-cancelled stop orders to minimize losses in the event of an adverse price movement. We have not been compensated by company(ies) mentioned above in any way. We do not hold any positions whatsoever in the above mentioned company(ies).
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