Points to watch: Novel Denim's December rally
attempts were stopped at 21.6 (the 38% retracement of the stock's 3/98-9/98 decline). The
stock has been in a narrow trading range since late November and is showing signs of
breaking out to the downside. Stochastics has given a sell signal. The Gann 1x1 at 19.26
provides support on the downside. This angle stopped the stock's decline on 1/13.
Additional downside support is provided by the 50% retracement level at 19.16. Wait for a
break below these support levels before selling, or shorting. Place a stop near the upper
end of the trading range at 21.6 .