Keeping an eye on Polyone Corp (POL)

Not at entry level yet but I am adding POL (Polyone Corp) to my long watch list.

I traced a trendline starting mid to late 2003 to the recent level. The results are two fairly long pullbacks following uptrends which tested the 9.50-10 price levels. If this line is correct, the price would be due to turn around and take another run at testing the $10 level. So it could give us a three points gain but it could take a couple of months to capture which is a turn off for a lot of people these days.

The daily chart shows the price near the lower channel line and the lower Bollinger band. The TSV is giving us the pullback we need for an entry. We have a slight divergence between the June 06 and the January 07 lows and the EMA lows for the same period. The weekly impulse is blue for the daily impulse is still red. We have to wait for the daily impulse to turn before getting in.

Overall, all the elements are there for a good trade but nothing looks very aggressive. May not be worth exposing the money to capture a 3 pt trend spread thinly over 3 months.

Happy Trading!

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