Technical Setups: Winn-Dixie, Regal-Beloit
2010 has provided a year of volatile stock performance for Regal-Beloit (RBC), a $2.2 billion maker of electric fans used in HVAC systems and industrial applications.
While shares of the company are up around 8% year-to-date, those gains have come after a number of larger price swings that have taken RBC from large gains to losses and back in the last several months. Now, a move lower looks possible.
Shares of RBC are setting up a bearish descending triangle pattern right now -- a setup that suggests shares will move lower on a breakdown below the stock's current support levels. Right now, that support level is $55, a level that's already been tested more than five times since the summer, indicating that share prices are extremely averse to moving lower.If they do, however, a much larger downside move could be to come. Wait for that crack of the $55 level before betting against shares. >>Also: 3 Stocks to Bet Against
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV