HAWK Blackhawk Network Holdings Overbot Rising Wedge Negative Divergence

HAWK has been a name bandied about as an attractive long but the chart says stay away. The happy days began with the green ascending triangle with vertical side of about 7 points which targeted the 35-36 level that price has attained. The overbot conditions, rising wedge and negative divergence (red lines) want to see price receive a spank down. The daily chart is also negatively diverged. It is always dangerous to try and short a stock with momentum so the idea is more to simply stay away from the long side. Adventurous traders may want to give the short side a try through put options.

The lesson is that there is nothing attractive here on the long side. The folks that enjoyed the ride higher from 24-28 are likely best served to take the money and run. 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.