Playing the bounce in Monster Worldwide
Published on Tuesday, 17 April 2012 05:56 Written by TradersHuddle Wire
New York, April 17th (TradersHuddle.com) - Shares of Monster Worldwide, Inc. (NYSE:MWW) closed the session at $8.62 well below calculated support at $9.57. Price action placed the stock in oversold territory as investors and money managers moved out of their positions.
Monster Worldwide, Inc. (NYSE:MWW) through its subsidiaries, offers help wanted advertisements over the Internet. The Company charges employers and human resource professionals to post and search advertisements, and allows job seekers to search job postings and post their resumes free of charge.
Monster's stock was trading in a well defined range with support at $9.57 and resistance at $10.40, prior to its decline. When the stock broke calculated support, it sparked the current down draft, which has shown how traders move out their positions in the stock.
From a technical perspective, the Monster Worldwide stock is in severe pain, as the harsh sell-off could place a heavy burden on buyers, who as they look to get their money back, might generate a price dynamic where buyers will become sellers as the bounce materializes. It can be expected that previous support will become resistance, as a new range gets defined. The maximum move for the stock should be calculated to return to previous support at $9.57. Traders wanting to play an oversold bounce in Monster Worldwide, by establishing a long position, would need to wait for evidence of buying at a specified area.
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