News Breaks
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| 11:31 EDT |  | FST |
| theflyonthewall.com: | Forest Oil: Earnings release technical preview, float-skew, extreme gap risk | | BULLISH CASE: On better than expected news/outlook the stock could trade to the upper limit of the bearish price channel at $20.63. On a bullish breakout above the price channel the following resistance levels would become upside objectives: $21.00, $21.35, $21.75, $22.20, $22.63, $23.00, $23.40, $23.81, $24.25, $24.63. BEARISH CASE: On worse than expected news/outlook the stock could trade to the lower limit of the price channel at $18.84. On a bearish breakdown below the price channel the following support levels would become downside objectives: $18.13, $17.88, $17.59, $17.25, $16.98, $16.71, $16.50, $16.25, $16. NOTE: Large short-base in terms of days to cover at 4, but with a very large 14.3% of the float short. Traders are positioned for very negative news. Reactions on a surprise, especially a positive one given the float-skew, have a high probability of being extreme in duration and price. Extreme gap risk. :theflyonthewall.com |
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