NEW BEARISH Plays

Crown Holdings - CCK - close 26.71 change +0.15 stop 27.55

Company Description:
Crown Holdings, Inc. is engaged in the design, manufacture and sale of packaging products for consumer goods. The Company's primary products include steel and aluminum cans for food, beverage, household and other consumer products and metal vacuum closures and caps. As of December 31, 2009, the Company operated 136 plants along with sales and service facilities throughout 41 countries. The Company’s business is organized geographically within three divisions: Americas, European and Asia-Pacific.

Target(s): 26.00, 25.60, 25.20
Key Support/Resistance Areas: 27.35, 27.00, 26.25, 25.90, 25.50, 25.00
Time Frame: 1 week

Why We Like It:
CCK printed an ugly reversal candlestick after their earnings report on 7/19. The stock has rallied right up into a congestion area that lasted 2.5 months in March/April. I expect CCK to turn back towards its 200-day SMA which is near our first target of $26.00, and possibly its 20-day and 50-day SMA's near our more aggressive targets. The stock made a lower low in late May and appears to be making a lower high now. I think we can catch some of this move for a quick gain with a tight stop above today's highs. I suggest readers use the above targets as areas to tighten stops to see how far we can ride CCK down.

Suggested Position: Short CCK stock

Options Traders: September $25.00 PUTS, current ask $0.50

Annotated chart:

Entry on July xx
Earnings 10/7/10 (unconfirmed)
Average Daily Volume: 1.43 million
Listed on July 21, 2010