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NS Group - NSS - close: 37.95 change: -3.05 stop: 40.01

Company Description:
NS Group, Inc. is a leading producer of seamless and welded tubular products serving the energy industry. These products are used in the drilling, exploration and transmission of oil and natural gas. The company's tubular products are marketed primarily in the United States and certain foreign markets. (source: company press release or website)

Why We Like It:
We would probably lean toward the bullish camp in NSS if you consider their earnings results and the longer-term trend in the stock combined with its bullish P&F chart. However, short-term the stock appears to be in jeopardy. NSS has produced a classic bearish reversal pattern with a big bearish engulfing candlestick at the end of a prolonged up trend. The stock has climbed from $25.00 in mid-May to north of $42.00 this morning. The initial pop was positive considering that NSS smashed the earnings estimates with a very strong quarter. But what is becoming a common occurrence this month investors are "selling the news". Volume was about five times the average on today's reversal. We want to see some confirmation that NSS has truly reversed so we are suggesting a trigger under today's low at $37.20. Our target is the $32.50-32.00 range near its simple 50 and simple 100-dma's. There is potential support at the $35.00 mark but if the major averages turn lower soon we would expect profit-taking pressures to push NSS under the $35.00 level. We will start with a wide stop loss at $40.01 since there could easily be an oversold bounce.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/25/05 (confirmed)
Average Daily Volume: 353 thousand
 

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