Medium term
Trade view / 10 November 2015 at 0:10 GMT

Jarden Corp's descent is good for a ride

CEO / Att Trading
Austria
Instrument: JAH:xnys
Price target:
Market price:
Background

Jarden Corp is an American consumer goods manufacturer with over 120 brands. In focus are household appliances and leisure products.

In figure 1 we see that the stock price has risen since 2011 from $12.00 up to $57.00. The stock was able to develop a steady upward trend, which several times the black trend-line several times. Currently the stock experienced a bigger correction which results in a possible short-trade in the current picture.

JAH weekly chart
jah1
Source: ATT Trading

Management and risk description

On the daily chart (Figure 2) we can clearly see a strong downtrend, which is drawn in blue. The strength can be seen by rapid down movements, which have a higher volume. A medium-term trader could wait for a subordinate downtrend to get a short entry. With increasing selling this trade has targets around $44.00 and $37.00.

Above the price level of $52.50 our short idea would be over.

JAH Daily Chart

jah2
Source: ATT Trading

Parameters

Entry: $51.50

Stop: $52.50

Targets: $44,00, $37.00

Time horizon: Medium-term

— Edited by Adam Courtenay

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Non-independent investment research disclaimer applies. Read more

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