Monday Morning

Gator's Chart of the Day: PC

No it's not "politically correct" ... it's a stock that's ready to dive.  Panasonic has been in a downtrend since November 2010 (not shown) and it has just failed it's most recent test of the resistance line.  Also note that the 50 day simple moving average has not been relevant but the Bollinger bands have.  In the chart below (also a daily chart) we'll take a closer look at recent action.

The stock hit the resistance line and failed.  Note that it did not make it up to the Bollinger band.  This tells me the trend line is the key on the upside but the bottom Bollinger band has defined support very well. 

The Trade
There are options available so I may be in this one.  It looks like now is the time for the short sale (or put buy) and the stop should be set just above the trend line somewhere around 8.15.  That would be a loss of about 4.5% assuming the short is put on near 7.80.  Absent any company specific good news (and I would expect bad news rather than good) the bottom Bollinger band is the target to exit the trade. 

Be aware that there is a dividend and the ex-date is Sept 27th.  I expect the trade to complete before the end of July but a second opportunity could arise so if you are also looking for a "rinse and repeat" trade keep that date in mind.

Notes: All figures are from Finviz.  I cannot explain why Worden has made the last 2 candles green.  They should be red.