InterContinental Exchange (NYSE:ICE) is Melting Down
Feb 18th, 2009 | By Charles Delvalle | Category: Chart of the DayBack in 2006 and 2007 one of my very favorite exchanges was the InterContinental Exchange (NYSE:ICE). I loved it because it was an over-the-counter commodity exchange. And unless you were hiding under a very large moss-covered rock in the mountains, you knew commodities were hot.
But now commodities aren’t so hot. That global slowdown is taking a knife to the neck of our old friend “demand”. And the ICE Exchange is slowly melting.
As you can see, the ICE has steadily dropped from a peak of $160 down to just under $60 a share.
Today, its Relative Strength Indicator (RSI – up at top) is showing the trend as weakening. And if you look at the Slow Stochastic (below the chart) it shows ICE as recently coming off an overbought level and heading down towards oversold.
That makes this a relatively low-risk short entry point.
ICE could drop down to its current support at $50 (which was the previous low) and should find a base there. That’s a nearly 15% gain.
And if ICE drops under that, you could see it for $40 a share.
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Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".
