This post was written by Minyanville contributor Smita Sadana.
Apollo Group (Nasdaq: APOL) was enjoying a bump in price after reporting earnings that were well above estimates, based in increased enrollments. Of course, one can argue that people would go back to school for skill enhancement in these tough recessionary times.
However, two days after that stunning gain, APOL is off 4.9% to $82.55, on a cautious research note from Citron Research, who argue that "this growth is a one time bump."
While I do not endorse any such research or base my trading primarily on it, I am taking note of the negative reaction on double the average volume.
The stock can certainly come in a little and reduce the distance from its 200-day moving average, which is 38% at the current levels. While not at an extreme, it is unusual in this market to find stocks which are trading so far out.
I'm seeing various levels of support on the APOL chart and they range from $75 to $79.
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