The Stock That ROCKed
Gibraltar Industries, Inc. (ROCK) engages in the manufacturing, processing and distribution of residential and commercial building products, and processed metal products for industrial applications.
ROCK is a great example of how when a stock starts reversing, there is no looking back.
I shorted ROCK yesterday at $22.77 when it looked to have peaked and reached overbought levels. ROCK has jumped up 34% in the last month and now due for a pullback/profit taking. This is perfect time for placing a bet on the short side. I was rewarded the very next day. With a drop of -5%. The stock was sold all day long. I did cover today not wanting to lose a perfect gain in 1 day.
ROCK made some big jumps on the upside with heavy volumes especially in the second week of August. However the volume is drying out indicating diminishing interest in buying furthur. RSI also hit 70 pointing to overbought level. Another interesting observation was the merging of the MACD line indicating time for reversal.