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Monday, August 9, 2010

Pacer International Oversold?

Last Thursday shares of Pacer International (PACR), a Concord California based transportation and logistics provider, plunged 25% as an analyst had concern about the company's ability to meet its earning goals in the future on rising freight rate. The drop continue the next day and the stock ends last week losing 35% in value in last two days, wiping out all the gains for the past 5 months.

Today bargain hunters took the opportunity and send the stock up 5.28% to $5.98 per share. Looking at the technical chart, it shows the stock touched the 200 day moving average during the two day sell-off. Today's buying activities are positive sign that there is support and if the stock can stay above the 200 day MA this could be a great time to buy.