Concordia Healthcare Corp. T.CXR.R

RE:Beacon Securities - recent note to clients

[argentia77]

sunshine7 wrote: With no imminent acquisition catalysts, we believe the shares will be range bound.

Range bound trading: atrading strategy that identifies stocks trading in channels. By finding major support andresistance levels withtechnicalanalysis, a trend trader buys stocks at the lower level of support (bottom of the channel) and sells them near resistance (top of the channel). The trader may repeat the process of buying at support and selling at resistance many times until the stock breaks out of the channel. The upper boundary of the channel is shown by a trendline that connects the points representing a stock's highs over a given time period. The lower boundary of the channel is identified by connecting the points representing a stock's lows. The downside of this strategy is that when a stock breaks out of the channel, it usually experiences a large price movement in the direction of the breakout. If the breakout direction is not favorable for the trader's position, he or she could lose badly.(Investopedia)