BKC (Long)...

Let's take a look at BKC. This one is a bit shorter-term than I would normally want to play on the blog here, but it is a good long play here. BKC doesn't report earnings again until late August or early September. What I see here is a stock that hit a climax low today. Note the heavy volume today, yet the stock closed well above its low for the day, suggesting to me that the sellers were flushed out on that plunge below $16 this morning. $16 has proven to be a strong support level here for the past couple months, and I think a bounce up off that level could be playable for a quick long trade. I think the 50-day EMA is the more likely resistance level for such a bounce versus the upper band or the most recent highs around $17.50. I would absolutely not give this trade any more room than say $15.50 (about a dime below today's low). If that level fails, there is literally no support in sight until we go back three years to its all-time low around $12, and I'm sure not willing to sit through that kind of pain. The options are too thin for my liking, so I'll only be looking to play this through common stock. Plus, this is a trade we could be in and out of in a couple days, and I tend not to use options for trades that quick.



Position: none