Wednesday Morning

Gator's Chart of the Day: GEOY

GeoEye has been in the news recently as it made a bid for its rival, DigitalGlobe (DGI).  DGI is much bigger and it looks like the takeover will not happen.  In fact, now the speculation is that GEOY will try to sell itself.  With a P/E under 9 and its stock down 24% in the past two weeks it could be attractive.

The green arrow is pointing at the upper Bollinger band which is just starting to hook.  That frequently coincides with a change in price direction.  The stock is a bit thin with average volume just over 250k shares traded and its market cap is under $500 million so it's not a trade for the squeamish but it can be very low risk with a stop just under Monday's low of  18.96.

Of course if the general market condition is negative or if the news about Greece continues to be unrelenting and bad ..... take a pass.