Crown finding a short term high | Michael Gable | Finance News Network

Crown finding a short term high

by Michael Gable

Crown is showing signs of peaking up at these levels. After falling sharply in May, the stock then required 3 months to attempt a rally back up to the May high. Volume was also low on the way up which is not a good sign. While CWN made its final move up last week to go to a new high, we can see divergence on the RSI and then a large sell-off yesterday. This indicates an obvious rejection from these higher levels. The most likely scenario here is a pull back to the June low close to $8. The stock goes ex-divided on 24 September for 19c so this may also contribute to seeing the share price down at those levels. Those looking at CWN to gain exposure to the Asian discretionary dollar should therefore wait for cheaper levels before buying the stock.

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