NEW BULLISH Plays
Sotheby's - BID - close: 18.21 change: -0.42 stop: 16.80
Why We Like It:
Sotheby's is one of the biggest names in auctions, especially of high-end items. By the look of the chart the recession appears to be ending. The stock just broke out over resistance near $18.00 a couple of days ago. This pull back to $18 looks like a new entry point to hop on board. I expect the $17.50 level to offer additional support but we're going to start the play with a stop loss at $16.80.
I would use small positions (about 1/2 to 1/4 your normal trade size) to limit risk. Our first target is $19.95 since the $20.00 mark could be round-number resistance. Our second target is $22.00. Currently the Point & Figure chart is bullish with a $30 target. We do not want to hold over the early November earnings report.
Entry on October 13 at $18.21
Change since picked: + 0.00
Earnings Date 11/05/09 (unconfirmed)
Average Daily Volume: 861 thousand
Listed on October 13, 2009