Eastman Kodak Company (NYSE:EK) held in a very tight pattern for about a month and a half before popping as much 15% intraday last week on December 9 on huge volume. Since that day, the stock has consolidated well above the break out level creating another bull flag type pattern.
After the large one-day spike EK dropped on news that it would be demoted from the S&P 500 to the S&P MidCap 400, but has since recovered. This type of action tells me that EK wants to go higher.
I am currently long in this $5.25 area. If huge volume comes in I will add above $5.40-5.50. The pattern getting tight again and worth taking a look. Could be January effect play or just a trade as this market broadens out as we make highs.
*DISCLOSURE: Long EK
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