The Stock Nobody Follows Is Ready To Make A Run
Dragonfly Capital | Mar 21, 2013 02:17AM ET
Looking for that one stock that nobody is following, that is ready to make a run. Well here it is. CBIZ (CBZ), is essentially an outsourcing company for all those things that skilled company players are unwilling to do. CBIZ provides accounting, benefits servicing, recruiting and many other services. Plus, they are headquartered in Cleveland! But what makes the stock interesting is the price action. In the daily chart below it has put in a rounded bottom, perhaps a ‘W’ pattern, and is consolidating under 6.58 resistance.
As it sits there, it has a bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that has pulled back from extreme levels. A break higher looks toward the 6.79 top in February, and then 7.07 from October 2012 as resistance. Moving out to the weekly chart shows that the 200 week Simple Moving Average (SMA)is the culprit holding it up mow.
The momentum indicators and oscillators are supportive of further upside price action on this timeframe as well. If it does break out, it has over 11% short interest that could fuel a squeeze higher. Take note that it is thinly traded, and approximately 25% is owned by insiders and large block holders.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Original post
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