Exelon Corporation (NYSE:EXC) Targets $33 and $35 In The Short Term
Denver, CO, 08/09/2013 (Avauncer.com) – Exelon Corporation (NYSE:EXC) (Closed: $31.35, Up: 1.65%) spent another strong session on high volume on Thursday. The volume at 17 million was significantly higher than the average volume of 7 million.
The stock had made a lifetime low at $9.25 in 1997 and ran in a secular bull market for a whole decade. Except a 25% hiccup in 2001, the stock didn’t have any serious interruption. This secular bull market came to a halt in 2008 when it dropped over 55% in just 4 months from the top at $92.13. It is a series of lower highs and lower lows since then, showing the clearly established downtrend in place. The only saving grace came in the form of the change in the angle of descent that signified the pressure of selling was easing off a bit. This change of the angle created a downward channel containing the entire price action from the July 2009 top of $54.47. The ray of light for the bulls is the inability of the price to touch the lower boundary of the channel in the last 3 years. The 2012 bottom of $28.40 is way above the lower boundary implying that demand is coming at the lower levels. This is also confirmed by the rising volume patterns, which suggests potential accumulation.
Another very interesting observation would be that every corrective rally within this channel has the same magnitude. The rally of March to July 2009 was of 9 points, the rally of May 2010 to November 2011 was of 9 points again and the last rally of November 2012 to April 2013 was of 9 points once more. This symmetry suggests a pattern which must be broken to get a really significant reversal.
The investors should keep an eye on the stock for a 10 points rally from a major swing low and then invest confidently. A break of $38 would trigger that move. In the short term targets would be $33.10 and $35.40 is the bullishness is intact.