Sunday, May 13, 2007

NYSE Group (NYX)- At a critical point

NYX is a stock that I've been looking to pick up for a while now. I'm a little hesitant because this is a Cramer favorite and there has been a downgrade issued by Goldman Sachs, but the technicals seem to suggest that it is at a good support point.

I've drawn the support lines. Notice that the volume has really dropped off, which indicates that there are no more big sellers. I think it is also bullish that a big analyst can issue a "sell" recommendation and still have the price hold up pretty well. I guess Goldman has determined that NYX will not grow at the rates it first expected.

I'm not sure I'll pull the trigger, but I'm very tempted.

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