In our Wednesday 1/28 Game Plan we looked at CLH. The round number came into play here and the more it comes accustomed to trading above the important 50 handle, the more likely it is to stay. This month the stock is now above the 50 figure for the third time since last October. It did so again last December as well. CLH rose 2% on Tuesday a good start to the week, and is higher 4 of the last 5 weeks. Volume trends are on the improve and one can stay long above 49.25. Here is how our analysis appeared in our report on 1/28.
Stocks that can be bought as they take out bullish inverse head and shoulders patterns are CLH. CLH is an energy equipment play that is higher by 2% YTD and lower by 13% over the last one year period and down 25% from recent 52 week highs. The stock is looking for a third consecutive up week after last weeks sweet 5.9% advance. The round 50 handle has been problematic, especially on the weekly chart with just one CLOSE above the week ending 10/24 at 50.11. On the daily it has finished above a few times and now has formed a slightly unorthodox inverse head and shoulders pattern and lets look to enter above with a buy stop of 50.25.