CTB – Squeeze Play Breakout

By | April 25, 2014

One of the definitions of a stock that is being “squeezed” is when Bollinger Band range, which measures standard deviation around a simple moving average, falls within the Keltner Channel, which is a measure of average true range around an exponential moving average. Shares of Cooper Tire and Rubber (CTB) have seen this type of compression over the last several months, as they consolidated between the 50% and 62% Fibonacci retracement levels of their 2011 low and 2013 high. Price and money flow momentum indicators have been trending higher during the period, and in yesterday’s session the stock broke above resistance.

24. RVT ctb Volume

I have no position in CTB.

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