Coca-Cola Hellenic Bottling Co. http://i.thestreet.com/files/tsc/v2008/photos/charts/121112_chart_cch.gif
Who'd have thought that a Greek stock would make our list of toxic stocks this week? Sarcasm aside, it may surprise a lot of investors to learn that Greek Coke bottler Coca-Cola Hellenic Bottling Co. (CCH) has actually had a strong run in 2012, rallying more than 30% this year after a sharp pullback in 2011. Now, though a double-top is threatening to derail the uptrend that this stock's been enjoying.
A double-top pattern is formed by two swing highs that come in at approximately the same price level. They're separated by a swing low that's the breakdown level for the pattern -- a move below that low triggers the sell signal in shares. For CCH, that sell signal comes on a move below $21.
So far, this move has been pretty textbook -- unlike the triangle pattern, double top formations are reversal patterns. That means they're more likely to reverse the existing trend than they are to resolve in the direction price way previously moving in. If you're looking to short CCH here, this setup could have some significant downside given the rally year-to-date and the sentiment against Greek stocks. That said, there's still a lot of headline risk here -- if you decide to take this trade on the downside, I'd recommend keeping a tight stop.
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