Radioshack,Radioshack Corp,RSH,market timing,fibtimer.comAugust 18, 2010
Shares of Radioshack Corp (NYSE: RSH) rose on Tuesday’s stock market rally, but there are dark clouds on the horizon.
Radioshack, which sells consumer electronics goods and services through its RadioShack store chain and non-RadioShack branded kiosk operations, has declined below a rising trend support line that we described in a previous report.
This line is the lower line of a flag pattern that has contained share prices since April. Draw a line on a daily chart through the highs starting on April 21 and extend it to the right of the chart. Then do the same thing for the lows starting at May 21 and the lows on July 20, you will have the flag pattern with a declining trend resistance line and rising trend support line.
A break of this line has high odds of continuing in the direction of the break.
On August 11 share prices broke below the trend support line and since all rallies have stopped at or below this line.
Radioshack could be headed for the $18 dollar level in coming weeks.
The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy does not hold a position in Radioshack.
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy does not hold a position in Radioshack.