Event Stocks. Today's Losers. 17/1/2011

Some of the biggest losers today amongst the Top 100 Stocks were: Lynas Corporation

(-3.94%), Qantas (-2.39%), Suncorp (-2.38%), Caltex (-2.06%) and Rio (-1.89%)

I've focussed on three of these: Lynas, Suncorp and Caltex. The last two have been impacted by the Brisbane floods and have been the subject of writings in recent posts. Lynas is a Rare Earths stock and has been the darling of many of the speculative traders in the market.

Lynas: For the medium term, Lynas's run looks like it has ended.

1. Beneath the stepped Super Trend Line
2. Beneath the mid-Oblique Up-Trend Line
3. MACD Histogram below its Zero Line
4. Daily Stochastic headed down with plenty of room before it is Oversold.
5. Smoothed Repulse headed down.

On the plus side, the stock remains within the confines of a strong up-trending channel. The area around 1.50-1.60 might provide support and result in another run-up in Lynas. We shall see.

Caltex: Operations at the Brisbane refinery were halted by heavy rains but the plant was not flood affected. It may have found support.

1. Chart is sitting on the support of the lower trend line of the up-trending channel.
2. Daily Stochastic is reading "Oversold".
3. Candles today and yesterday were both squat dumpy candles. Volume today was average. If this chart was heading lower, I'd expect more "effort" on the part of sellers - bigger candles with higher volume.

On the negative side, if the chart does break below oblique support on increased volume - then I think it will be "Good night Nurse" for quite a while.

Suncorp: Sentiment has been particularly negative because of the Brisbane floods.

1. The big climactic selling day was four days ago (see arrow on chart).
2. I'd expect the low of that day to be tested, if it holds, then Suncorp may have seen the lows for the time being.
3. I wouldn't expect a rebound to higher highs for some time yet.
4. The stock needs to build a base from which to rise.

I'll keep an eye on Suncorp, but I'll be surprised if it becomes a buying proposition in the next two-three weeks. A lot of technical damage has been done to the chart of Suncorp - but the very worst could be behind it. But I would think that punters will need some convincing before they pile into Suncorp in the near future

Good luck

Red