- New Trades -
CH Robinson Worldwide - CHRW - close: 60.62
Why We Like It:
From a technical perspective the outlook for CHRW looks pretty ugly. Shares spent several months building a bearish consolidation pattern with support in the $62.50 area against a trend of lower highs. The April 25th earnings report was the catalyst to push CHRW out of this consolidation pattern. Now the oversold bounce is already starting to fail.
I am suggesting we launch small bearish put positions at the open on Monday morning. We'll use a stop loss at $65.25. More conservative traders may want to use a stop in the $63.50-64.00 area instead. Our multi-month target is a drop to $50.50. We want to keep our position size small to limit our risk.
- Suggested (small) Positions -
May 07, 2012 - entry price on CHRW @ --.--, option @ -.--
symbol:CHRW1319A55 2013 JAN $55 PUT - current bid/ask $ 2.95/ 3.10
Chart of CHRW:
Weekly Chart of CHRW:
Current Target: $50.50
Current Stop loss: 65.25
Play Entered on: 05/07/12
Originally listed in the New Plays 05/05/12