On June 14th we wrote a note about HHC, saved the draft and proceeded to forget about it (see below). At that time we noted the beautiful pattern being traced out and the stock’s potential as a long play. We certainly thought it a good idea to stalk the stock for a good low risk entry point. The stock rallied and has come back to test the support zone that was created earlier in the year. We think the stock looks great as a stalk candidate and would watch the daily chart closely for a good, low risk long entry. Our view will only be changed by a drop through the bottom of the support box (down below $100).
From June 14th — “HHC is tracing out a beautiful Bull Flag on the Daily Chart. The top of the flag is $111.11 interestingly enough… The bottom of the flag is $97.16. We would add this to a long watchlist and look to enter on any pullback closer to the bottom of the flag.”