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MCO Breakout

By Johns Wu on Oct 26, 2005

th_MCO_breakout.jpgThe 6-month chart for MCO looks great and the 5-year chart looks even better. MCO made new highs today and is currently seeing "blue skies" as there is no resistance overhead. It looks like a pretty good swing-trade setup.

Nice clean breakout on good volume. There is good support in MCO at the rising 50 DMA and also at around $52. The RSI looks too overbought to jump in at this price, but it may be a great buy on the pullback.

I’m not sure how strong their earnings call was, but I’m hoping the gap will be filled in the next few days for a safe entry. Again, a good entry would be around $52. Stop-loss right below $52 for a mid-term trade. Stop-loss below 50 DMA for a longterm investment.

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This entry was posted on Wednesday, October 26th, 2005 at 8:45 pm and is filed under Stock Charts. You can skip to the end and leave a response. Pinging is currently not allowed.


2 Responses to “MCO Breakout”


By Anonymous on October 27th, 2005 at 1:29 pm

I have worked at several publicly traded companies in a VERY SENIOR capacity and I know the rating agencies very well. Each year they send your their fee schedule and you have no choice but to accept the fees. There is no alternative. When looking at stocks to buy, I focus on the ratio of operating cash flow to capital expenditures. The higher this ratio the better. A ratio of 5.0x is good. Moody’s ratio is about 29x. Other companies that have a high ratio are United Health Care,Caremark, Express SCripts. Thus, they need modest capital expenditures to sustain their cash flow. Focus on the cash flow statement. It will give you great insights if you are a long-term investor.

By Anonymous on November 1st, 2005 at 4:43 am

Moody’s downgraded by Keefe Bruyette
Briefing.com (Mon 6:36am)

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