IntercontinentalExchange Inc. (ICE: sentiment, chart, options) provides an online marketplace for global commodity trading, primarily of electricity, natural gas, crude oil, refined petroleum products, precious metals, and weather and emission credits. Technically speaking, the stock has rallied sharply since hitting a low near $50 per share in late January. In fact, the stock is up more than 113% during this time frame, rallying along support at its 10-week and 50-week moving averages.
The latter trendline provided key support following ICE's early July plunge, allowing the shares to resume their run higher. Currently, the equity is battling short-term resistance in the 110 region. This area has proven to be quite a speed bump, capping ICE since late October.
Despite the strong uptrend, there is plenty of sideline money available to the equity. In fact, heavy investor pessimism could be a sign that the stock is poised to move F.A.R.: Fast, Aggressively, and in the Right direction. For such potentially lucrative moves in an equity, it must adhere to our Expectational Analysis ® methodology, which takes into account technical performance, fundamental wherewithal, and the all-important investor sentiment aspect.
In today's edition of the Casual Contrarian, I take a closer look at the three elements of Expectational Analysis ® and how they apply to IntercontinentalExchange in order to determine if the stock would make a nice contrarian play. So sit back, enjoy, and good luck in your trading.
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