Comcast (CMCSA) – Classical Chart Pattern Appears

November 19, 2009 4:25 pm

Comcast (CMCSA) had news that both helped and hurt the stock in that last few days. First, the NBC deal that would help to expand their content and distribution was seem as a positive for the company. There were a few flies in the ointment, but overall it was an exciting opportunity, as long as no one overpaid.

Then we saw the news that they were going “help” with the Ticketmaster and Live Nation deal in order to move it away from anti-trust concerns. (See news story above). Fundamentally, the company looks to be healthy but at the time that we added the position, it had a inviting slope up as it was bouncing off support. That has changed since Monday of this week.

A nearly perfect “head and shoulders” pattern has emerged as shown below. (Bearish)

cmcsa

It appears that there will be support  around $$14.00-$14.25. If that fails, we see another potential move toward the July lows and will set a stop just under $13.90. If it can hold above $15.50, it may break the pattern and will see resistance toward  $17.

___

___

Disclosure: Horowitz & Company clients may hold positions of securities mentioned as of the date published.

Be Sociable, Share!

false

Be Sociable, Share!