Owens Corning (NYSE:OC)
I just sold my shares in OC, I would like to know if I got out too early.If I do how long should I stay with it.
A: It is never a bad idea to take gains. The market is at a critical juncture right now testing that June high if 956. See the post on the front page titled “Can the S&P Break Through Resistance?” Any pullback to support will drive most stocks lower and possibly OC. Our studies show 75% of stock move in tandem with the broader market over the short term. Specific to OC, we issued an Uptrend back on 7/15/09 when the stock punched through those moving average resistance levels. It coincided with upticks in many of our proprietary indicators. Right now, some of those indicators are in overbought territory as are the stochastics so your sale probably wasn’t too premature. If you are interested in getting back in, see if OC retests any of those moving averages which have now become support. Your upside target will be the trend line that goes back to May 2008 which would put OC near the $18 level.