A Technical Analysis of How and When to Short Titanium Metals Corporation (TIE)

Titanium Metals Corporation (TIE) started an uptrend in May '05 which continued through the middle of May '06. During that time the stock moved from $4.50 to $45 when the rise ended. Through the second part of May and the month of June, TIE moved sideways between $30 and $40.

Note how the moving averages are getting close to each other, which is a sign of weakness. Within a month and half the stock created lower lows and lower highs twice, which is another sign of weakness.

For the last three trading days, TIE moved below the 20MA, a possible indication of a new leg down.

Consider selling TIE short as soon as it trades below $31.10, with a stop loss order at $32.10. Look for a $1 to $3 drop in the stock price.

Comments

[User 1:]

This was a great call, Yaser. The downtrend has taken place just as you predicted.

2006 Jul 14 10:42 AM

[Brad Weismann:]

Wow, too bad I didnt see this article until today, I am still long on TIE! I guess my luck just isn't with me on this stock.

Great call Yaser!

2006 Jul 14 02:12 PM

[Yaser Anwar:]

Thank you guys :)

2006 Jul 19 11:26 PM