CHB Champion Enterprises Setup Looks Good

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CHB Champion Enterprises has had some big volume come in recently (shaded in green on the stock chart above, click on it for full size).  And it is looking like a big move could be coming to the upside.

After a brief multi day spike up in March CHB has not really participated at all in the broad markets super rally.  After that spike up in March CHB pretty much has drifted sideways in what I consider to be a very long consolidation.

It drifted down in mid July in what appears to be a final bottom for CHB.  What is significant is that CHB did not continue to break down to retest the lows of March.  This is important because it is a hint of at least some strength in the stock and says that CHB is strong enough to resist a full retest.  It is good bottoming action I like to see.

Even more significant is that now CHB has had a big surge in volume come in on the recent advance and price seems to be consolidating in a sideways triangle type formation.

If CHB can get above .60 cents it would be a positive initial breakout signal in my opinion.  Volume is pretty heavy today and it is possible that a move could start either tomorrow or early next week.

It looks like CHB is going to release earnings after the market close today.  It is usually a very bad idea to own anything right before or after an earnings release because it can screw things up on the market open and there can be almost zero chance to mitigate risk.

But the chart is speaking to me and it is saying it wants to get a breakout going.  That is what the volume tells me and the price setup.

CHB is in the real estate sector (factory built housing) which has been perking up as of late.

Posted in Market Timing, Penny Stocks, Stock Picks, Stock Setups
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