OTM technical model updates – CNW, IR, RCL

In his 1/1/2015 post Phil laid out the investment cases for CNW, IR and RCL, which he will overview at the next OTM club meeting on January 12th.  All of those securities have calculated Intrinsic Values (IVs) that are above current price, and they are all BUY status on the OTM technical model.

Below are the OTM technical charts for these three securities as of market close January 2 2015.

IR is in the middle of a “broadening pattern” — these are not particularly common and are indicated by higher highs and lower lows.  In this case the stock is just floundering about looking for direction, which may come after the January 30 earnings call that Phil indicates.  The technical analysis would agree I think that waiting for some direction is a smart bet.

01032015 IR

In the case of RCL below there appears to be solid support at 70.  Price is now nearly 83.  Trailing stop is at $75.  Although the model is strong BUY, I think this is less a technical buy and more of a fundamental, as the Intrinsic and P/E analyses are strongly in favor of this currently being a value buy even after its run-up.

01032015 RCL





CNW below looks like it is moving in a Triangle pattern – converging to a decision over the next month or so about whether it is going to break up or down (most triangle patterns don’t last all the way to the point).  Like Phil my opinion would be to wait for an entry point to see which way this thing breaks — in this case, which trend line gets violated.

01032015 CNW

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