Don't Ignore This Chart!

SRCL Wastes No Time Breaking To Six Month Highs


Stericycle (SRCL) has been under rather intense selling pressure over the past 16 months, losing half its market cap.  The waste management company disappointed Wall Street on several occasions and we've seen major gap downs on heavy volume three times over those 16 months.  The stock seems to have put in at least a near-term bottom with its latest quarterly earnings, which were released Wednesday after the closing bell.  SRCL beat on both its top and bottom lines and it's gapped up on heavy volume today, closing above key six month price resistance.  Check out the chart:

With any strength at all tomorrow, we should see its SCTR clear 30 for the first time in the past 10 months.  One negative was that SRCL closed well off its intraday high of the day, but the close did still manage a breakout and volume was strong, indicative of accumulation.  For those willing to take on a little extra risk in an effort to drum up higher returns, SRCL may have just confirmed that its bottom is in place.

Happy trading!


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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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