USG Gypsum Weekly Chart Overbot Rising Wedge Negative Divergence

The housing recovery has catapulted key components to breath-taking heights. Gypsum is key since it goes into the manufacture of drywall. In one-year's time USG has catapulted from 6 to over 30, 400%, a phenomenal move. The volume continues to trail off. There are less and less traders chasing it higher, but they are chasing it higher. Weekly and daily charts are prime for a spank down. The stochastics above are pegged at 100% and cannot move any higher. USG is a very attractive short moving forward, especially with scaling in over the coming days or weeks. Keystone caught the pull back in the short side in the Fall. Price appears to be producing a significant top right now. The pull back should create a negative vibe in the housing sector. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 1/28/13 at 10:02 AM:  The above chart is posted as Pending Home Sales report a surprising 4.3% drop when a 1% rise was expected. The broad markets weaken.