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Trade-Ideas LLC identified
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Dynegy as such a stock due to the following factors:
- DYN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.9 million
- DYN has traded 4 million shares today
- DYN is trading at 2.88 times the normal volume for the stock at this time of day
- DYN crossed below its 200-day simple moving average
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on DYN:
Dynegy Inc., through its subsidiaries, produces and sells electric energy, capacity, and ancillary services in the United States. It operates in three segments, Coal, IPH, and Gas. The company sells its services on a wholesale basis from its power generation facilities.
The average volume for Dynegy has been 1.6 million shares per day over the past 30 days. Dynegy has a market cap of $72.5 million and is part of the utilities sector and utilities industry. The stock has a beta of 2.03 and a short float of 11.4% with 4.65 days to cover. Shares are unchanged year-to-date as of the close of trading on Friday.
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