Thursday, December 20, 2012

Sturm Ruger (RGR) breaks above a steeply declining two-week channel

DEC20 0020EST. Firearms manufacturer Sturm Ruger (RGR), notorious in the wake of the recent tragic school shooting in Newtown, CT, has today rallied through the resistance line of a steeply declining two-week price channel.

This blog notes the price action in Sturm Ruger while maintaining a respectful non-engagement regarding the political debate about the role of guns in society.

RGR has declined aggressively over the past two weeks, losing about a third of its value from the Dec 4th high of $59.82 to the Dec 18th low of $40.00. Most of the decline occurred before the Newtown tragedy of Dec 14.

As already mentioned, today's price action broke through the resistance trendline of the fortnight-long channel, shown below in dashed red. Such a break sometimes brings further price appreciation; bullish sentiment would be strengthened if price action proceeds above today's intraday high of about $44.3.

RGR. Dec 4 to present. 5-minute candles.