BIGC : VST Overbought and due a correction, MT still looks good.
August 2, 2011 Leave a comment
BIGC has had an amazing run and over the medium term can go higher still – 145-150 or so would not surprise. However the short term points to risk in that it is overbought and due a correction. It may strike higher and try and break its near term resistance at 125, which will stand a decent chance if the US markets turn from 7 losing days and post a solid rebound. So it could get to 128, even 130 this week, it is possible.
We would watch closely if we were trading it, and either sell if it breaks below 119 or sell if it spiked above 125 due to a global equity bounce. If we bought it for the LT, we would hold for higher prices and indeed buy more if it comes off to nearer 90-92