Borders traded down almost 12% on Friday October 30, 2009 during the market weakness. Not many stocks traded higher on Friday, even the most defensive took losses to some extent. Regardless of the market correction and how far it will go, BGP has hit a 62 Fibonacci retracement level. It might be worth monitoring this stock as the correction in the broader markets continues.
If BGP levels out during the market correction, we can begin to set parameters up for a trade to the upside and use this latest retracement level low of 1.83 as a sell stop. However, look for a possible higher volume day in the 3-4 million shares range if there is further washout past this retracement level to signal a possible reversal. Fridays trading volume was 1.3 million shares.
BGP is set to report earnings on November 24. Long term traders may want to wait until this earnings report before buying in. BGP could be a good candidate for nice technical trading, despite the fundamentals that all things print are being fazed out of our lives little by little.