We did a good trade in Comstock Resources, doubling our money in less than a month, having correctly figured from the volume pattern and other factors that it was going to blast clear above its 200-day moving average, which it duly did. We ditched it at a good price about 2 weeks ago in order to sidestep the reaction that has since ensued, and part of the reason that we sold was to book good profits ahead of the Fed possibly raising interest rates, which in the event they didn’t. We
bought it and
sold it at the points shown on the 6-month chart below.
The long-term chart for Comstock Resources continues to look very positive indeed, with it having blasted above its 200-day moving average from a low base pattern on strong volume, driving its volume indicators sharply higher. It looks like the start of a bullmarket on this chart and it’s still very cheap.
Now that the Fed has backed off from raising rates, in order to avoid “rocking the boat” ahead of the election, because they want Clinton to be elected, there is no chance of a rate rise before December at the earliest, so we are back to “risk on”, a good background for stocks like this. Since the 6-month chart for Comstock Res. remains strongly bullish, with it having reacted back to a support level on diminishing volume and partially unwound its overbought condition, it looks like we are once again at a good point to buy this stock, especially as we have just seen a “Golden Cross” – the 50-day moving average rising clear above the 200-day, the 1st time it has been above it since 2014. So it is rated an
IMMEDIATE STRONG BUY.
Comstock Resources
website
Comstock Resources Inc., CRK, closed at $6.94 on 23rd September 16.
Posted at 7.00 am EDT on 25th September 16.