03/27/00 Calpine Corp (CPN)
Points to watch: Calpine,
which set an all-time high of 123 on March 22nd, plunged 18.75 on Friday
to close at 89.75, its lowest close in a month. A top in the stock was
confirmed when it failed to hold support at 98 (the 3/15 intraday
low). CPN also broke below support at 91.63 (the 1/24 intraday
high), and crossed below its 21-day moving average for the first time
since February 15th.
Short term technicals are deteriorating:
daily OBV has turned down, and both daily RSI and stochastics have moved
below 70 from overbought.
We would
wait for additional confirmation before shorting CPN. A sell short
signal would be given if the stock fails to hold both its 55-day moving
average at 88.4 and support at 86.1. After a break, downside support
would be at 81.2, 74.8-75.6, 71, and 65.1. Resistance is at 91.6,
93.6 and 98.
