Ever since June 2007, CKR has been trending downwards. Not only did this pause during August to October inside a descending triangle, when this broke the triangle, there was a role reversal that happened after the breakdown. The support that turned into a resistance, was tested 3 times before it finally dropped to its minimum target and below. Then sometime in December 2007, CKR goes sideways again in another descending triangle with a bigger base. Last night, the burger maker's bottom finally gave way.The support here is pegged at $11.28, with a downside target of $8.46. Anytime, this should rally back above the support, a cut should be made to preserve the capital. To confirm the bearish sentiment, the moving averages have long been in the bearish firing order since October. Another confirmatory indicator is the MACD. It has been oscillating below the zero line ever since June 2007. Everytime it rallies to the zero line, it has a hard time keeping itself above the zero line.
Since the bearishness is confirmed, there's only one thing left to do: short the sucker! And short it I did. The question now is, does it have enough momentum to propel it down to its target? If only the prices of their products also adjusted downward like the stock price...
