RE:RE:RE:CHR has been added to 3 IndicesThis is normal market action IMO. The share price is up 37 percent YTD and in mid-November , the weekly RSI and MACD were at their most overbought in past two years. Therefore, the share price is consolidating from an overbought level.
But the broader picture still looks promising. Earnings estimates continue to rise and , looking at the chart close to all time highs, this is promising. Why? Lack of resistance. Just about everybody who has gone long this stock over the past two years is in the black. Think about the resistance that under performing stocks have to work thru as existing holders get back to break even and psychologically breathe a sigh of release and SELL. This is why struggling stocks take so long to achieve prior highs, they meet supply at every higher level. On the other hand, when a share price is close to all time highs, with good quant rank (relates to estimate revisions), catalysts to SELL aren’t as clear. Valuation isn’t egregious , so favourable IMO for 2018...