Sunrise Senior Living Stock Shows Warning Signs

CLICK HERE FOR FULL SIZE CHART IMAGE

Shares of Sunrise Senior Living, Inc  (NYSE: SRZ), the McLean, Va-based companny which develops and maintains senior living residences and other facilities is showing a warning sign that it’s ready to take a breather. 

The stock has retraced from its recent high price of $8.38 that occurred on February 17, 2012. It broke the 200DMA yesterday (March 28, 2012) on high volume, indicative of distribution. The closest support around $7.16 was broken yesterday. The next closest support is around the $5.97 area; if that’s taken out, then $5.50 would be next support. A retracement trade could trigger around $5.97, in which case the target would be around $7.16. A close above the $7.16, which is above the 200DMA, could trigger a breakout signal. Confirmation would occur when the low of the day would be above $7.16.

The general market is also consolidating at these levels. The SPX (S&P500 index) has been consolidating between 1389 and 1419 for over a week. A close above 1420 could trigger a breakout entry in the markets for a target around the 1440 area. The current consolidation in the markets should be construed as healthy as long as the support at the 20DMA does not breakdown.  

Article Image WideView 640x300: 

Stocks, Trading and Investing