Friday, March 25, 2011

TGN: The End of Its Relative Strength



As noticed in the daily relative strength chart (against BETXT) above, TGN overperformance broke its uptrends following a year long of consistently beating the index.

The short term trend is clearly down and the technical damage is increasing the probability of a longer term underperformance cycle.


Cash-basis, TGN's longer term first support is in the 225 - 235 area (as noticed in the weekly chart above). Holding above this area keeps the probability of the stock tilted towards the long side.


Using a P&F chart (above) we identify the 215 level under which the uptrend starting in 2009 is probably reversed.

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