Corning (NYSE: GLW) Setting up for Another Surge

All traders, over time, eventually start gravitating towards certain stocks. Not because they particularly like the underlying companies or what goods/services they offer, but because these stocks generate winning trades.

Time and time again.

Stocks like these are usually deliberately traded, meaning that that don’t chop sideways. They don’t waste your time, and they especially don’t waste your hard-earned money.

They’re dependable, easy-to-read, and generate attractive trade setups – often in both directions.

And as luck would have it, we ran across one such stock a few months ago.

One that’s quickly become a personal favorite of mine.

In the weekly candlestick chart above, you can see that we’ve plotted out Corning Inc. (NYSE: GLW), a certified winner if I’ve ever seen one.

Not because the stock is trending upwards, though.

It’s not.

In fact, GLW has been “stuck” around the same price (relatively speaking) for almost two years now.

But over those two years, it’s undulated up-and-down enough times to fund an early retirement.

If you were able to trade the swings, that is.

And back in May, we did precisely that – trade the latest major upswing. After getting in at $31.00, GLW shares soared, rising 10% over the next few weeks.

Then, in early August, we went short, riding the GLW “elevator” downwards (at $32.50) to a rapid 17% drop.

Had you bought appropriately priced call and put options for both trades, they would’ve returned massive gains in a very short amount of time.

And now, in mid-September, GLW has delivered yet another nice-looking setup. This time, it’s to the upside.

Stochastics are low, suggesting that shares remain oversold despite the recent buying, and contact with the lower Bollinger Band was made in mid-August. That’s a little farther back than I’d like to see, but it’s totally workable – especially with a stock like GLW, which has followed this same boom-and-bust pattern for more than a year.

Best of all, the current weekly candlestick is trading well above the recent highs, suggesting that key resistance may already be broken. And though GLW has risen significantly over the last few days, it still could rise further as the next level of key resistance sits just north of $33.50.

And if GLW prices hit that mark, we’d see a gain of roughly 9% from our current trade trigger (at $30.68).

As great as that all sounds, though, there is something we need to be wary of with GLW:

The gravy train may be ending soon.

What I mean is, if GLW “tops out” around resistance at $33.50, a downtrend may finally occur after years of indecision. We’ll probably see another opportunity to go short from there, but I wouldn’t count on getting a full “rebound” setup to the upside after that.

That might be disappointing to hear considering just how well GLW has performed for us, but like all good things, they must eventually come to an end.

All-star stock setups included.


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