SunTrust analyst Tobey Sommer upgraded Corrections Corp. to Buy from Neutral.
He believes that following the last two months of “uniformly negative news”
that some positive news flow will begin to be mixed in again. Additionally,
Sommer believes the company can continue to make a double-digit dividend payout.
CXW has had a chance to sell off and consolidate for 9 weeks (daily chart on the left). The last of the weak hands are out. There are many positive catalysts that can appear that make this a great day trade and swing trade. CXW gaps over the three day high, and has had two small range days prior.
When we get a fundamental catalyst combined with a great technical setup, that is when we put our money to work. We posted live for our members a buy of CXW at $14.00 (bull flag holding, 5 minute chart on the right), and sell half at $14.37 and the second half at $14.53, a nice 3.2% gain in less than 30 minutes. This setup also makes a great swing trading opportunity for much bigger percentage gains with a stop below the consolidation low.
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