Lou,
I enjoy your insights – perhaps you can enlighten me on the short/ medium & long term outlook on BIN.
Thanks,
Bernie
Edmonton
Hey Bernie,
Thanks for the assignment! I last analyzed the shares of Progressive Waste Management Ltd. on Aug. 17, 2011 at Carol's request. The stock closed at $19.77 that day and it was advised that the downtrend didn't appear ready to reverse.
A review of the charts will provide further evidence to help determine how to manage BIN.
The three-year chart depicts a stock that is still struggling to move higher. There are a number of issues on the chart that need to be noted. Resistance along the 200-day moving average in October and resistance along the 50-day moving average in November. In addition the death cross that surfaced in August has not been resolved.
The RSI and the MACD are not currently signalling a shift in momentum to the upside on the six-month chart. The stock has to hold at $19.00 if it is going to make a serious run at a new leg up.
I am still cautious about the prospects for BIN. It made a nice run to $23.75 in October, but gave it all back. Generally I am not tempted to chase a stock that doesn't satisfy my criteria for a buy. Missed profits are soon forgotten, booked losses are always with us.
If you like the story, keep it under surveillance and watch for a bounce off of support. But keep in mind that it is going to take a lot of heavy lifting to reverse the downtrend.
Make it profitable day and happy capitalism!
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Lou Schizas