A Nice Trade Setup: Calgon Carbon (CCC)

Here's a name I don't usually focus on; Calgon Carbon (CCC).  Why the sudden interest?  a) the charts of course b) they are in the business of air and water purification…a topic of headline interest these days.  

Let's leave the fundamentals (fundies) on this name for another day and look to the charts instead.

Volume: Check…lots of it and has been rising the past several weeks, along wit the stock price.

Earnings: Not until end of April

Weekly Chart:  A narrowing trading range has been developing over the past 3 years, which when broken one day could lead to a large move.  The stock is currently trading at the upper end of this long-term trading range and has made a quick 14% up over the past week.  While that's a quick and sharp move, on the weekly chart this looks attractive for a long for a bucket 3 investment.

Daily Chart: Given the sharp move up discussed above, on the daily chart the stock looks overextended in the very near-term.  The candlestick formation over the past two days (Tuesday/Wednesday) looks like it needs the stock to consolidate a little and I could see the stock give back roughly 4% (to around $15) here until it moves higher again. 




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