Education Management

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Exreme: Overbought; RSI at 72.49

Nearest Resistance: $26.40

Nearest Support: $24

For-profit education firm Education Management ( EDMC) is showing traders one of the more attractive near-term setups right now, thanks to a recent breakout above resistance at $24. While the for-profit education industry has been under pressure for most of 2011 as new regulatory pressures threaten to derail Federal loan funding, EDMC has actually had a very bullish run for the year -- shares are up more than 37%.

With resistance at $26.40, now looks like a good opportunity to take a long position in EDMC. I'd suggest putting a protective stop just below $24 to avoid against having this trade turn around on you unexpectedly if sentiment changes.

To see these stocks in action, check out the at Overbought and Oversold Trades portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


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At the time of publication, author had no positions in stocks mentioned.
Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on

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