Technical Analysis of Financial Markets

Monday, September 15, 2008

Shaw Group, Inc. (SGR)

The Shaw Group provides engineering, design, construction and maintenance services to government and private-sector clients in a wide array of industries, including the energy, environmental, infrastructure and emergency response markets. Having declined over 85% within the last 2-month period, price action is now finding support at the $35 level which served as prior resistance on two accounts during early 2006 and 2007. With RSI beginning to indicate oversold conditions, an entrance into a buy position with stop on close below $35 may serve as a low-risk trade. Otherwise, enter short on close below $35.

No comments: