Time to Short Radioshack Corp. (RSH)?
08/19/2010 12:01 am EST
Shares of Radioshack Corp. (RSH) have risen in recent rallies, but there are dark clouds on the horizon.
Radioshack, which sells consumer electronics goods and services through its RadioShack store chain and non-Radioshack-branded kiosk operations, has declined below a rising trend support line that we described in a previous report.
This line is the lower line of a flag pattern that has contained share prices since April. Draw a line on a daily chart through the highs starting on April 21 and extend it to the right of the chart. Then do the same thing for the lows starting at May 21 and the lows on July 20, and you will have the flag pattern with a declining trend resistance line and rising trend support line.
On August 11, share prices broke below the trend support line, and since then, all rallies have stopped at or below this line.
Radioshack could be headed for the $18 level in coming weeks.
By Frank Kollar of FibTimer.com