New Plays, Tuesday, 10/11/2005
HAVING TROUBLE PRINTING?
New Long Plays
New Short Plays
Trinity Ind. - TRN - close: 36.88 chg: -1.34 stop: 40.01
Trinity Industries, Inc., with headquarters in Dallas, Texas is one of the nation's leading diversified industrial companies. Trinity reports five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group and the Industrial Products Group. (source: company press release or website)
Why We Like It:
We like TRN as a bearish technical candidate. The company issued upside earnings guidance back in September but the stock seems to have run out of steam after a big run from its May lows. Technically TRN has produced a double-top pattern with the peaks in September and November and now shares are breaking down under support in the $37.50-38.00 region in addition to its simple 50-dma. The MACD is bearish as are its stochastics and RSI. Volume on today's breakdown was almost double its average. We are going to start the play with a wide stop loss. Our target is the simple 200-dma near $32.00 (target 32.50-32.00). We do plan to exit ahead of its very late October earnings report.
Picked on October 11 at $36.88
Change since picked: + 0.00
Earnings Date 10/31/05 (unconfirmed)
Average Daily Volume: 385 thousand