ENDP Watch

When last we left Endo Pharmaceutical Holdings Inc. (ENDP), it had whipsawed from bear to bull in a day, but with declines intraday on both days. Today, the price caught up with the signal.

	trend	sto	sto zone	pps	psar	macd	macd trend	ma20	ma200
ENDP $30.57

On Thursday I wrote of ENDP, "A persistent break above the $29.90 range high would help soothe my nervousness.

Even better, if it were on significantly higher volume." Today we got the breakout, to a new high of $30.78. But the volume is lagging. That lag creates a certain uncertainty (certainly) for the cautious trader.

Also, although the price is blue skies for the nearer term, it lies straight in the midst of heavy congestion dating back to 2007, as the stock topped before its recession fall.

However, all the signals I follow are on the bull side, except the macd, and it is rising toward bull territory. So, by the book, this baby is a buy for my account.

The pre-recession high was $35.85, and that's a pretty fair target. But there is so much three-year-old congestion that it is hard to know where to try the resistance lines. Best to simply play the current price-and-signal configuration, and be ready to jackrabbit when jackrabbitry seems to be the best course.

Reversal Levels

• $35.85, +17.3% (pre-recession high)
• $30.78, +0.7% (swing high)
• $30.57 <== You are here.
• $29.01, -5.1% (20-day ma)

Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

Abbreviations:

• pps - Person's Proprietary Signal.
• psar - Parabolic Stop and Reverse
• ma20 - 20-day moving average
• ma200 - 200-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways.
• sto: green for bull, red for bear.
• sto zone: green for overbought (80+), red for oversold (20-), yellow for neutral zone
• psar, pps, macd: green for bull mode, red for bear.
• macd trend: green for rising, yellow for sideways, red for falling.
neutral.
• ma20, ma200: green for above the average by more than 1%, red for below the average by more than 1%, yellow for within 1% either side of the average.