There isn’t much in the data stream that would suggest that the company is on the verge of a business breakthrough that will get it on a sustained uptrend.
Best plan from here – take the tax loss. If you really like the story put this one on your watch list and look for a trend reversal. The best time to buy a stock – is when its going up.
Having said that there is support at $2.50 and transportation stocks tend to enjoy a period of seasonal strength from September to November.
I would expect a pullback in the near term. You can see that volume is thinning out and all the good news is in the stock.
The best case scenario for ARE is that it retests support at $10.00 and then makes a move to regain some traction to the upside.
When I look at a chart like this I have to admit that they are not my favorite. The stock isn’t going up, its trading below its 50 and 200 day moving averages and the uptrend is broken.
CAT looks to be in a good place for a trade from these levels to $65 which would generate a double digit return.
