Herbalife Hits Double Top: Inside The Trade
Herbalife Ltd. (NYSE: HLF) is slamming into the highs from 2012. The stock is trading at $73.63, +2.99 (4.23%). The shorts, including Ackman continue to take a beating yet finally there are technical signals of a pull back. While most of these short investors are heavily under water, those entering now have a solid risk reward trade. Not only is the stock at double top but it is extremely extended and still faces major questions about their business. Just last month a major distributor named John Peterson committed suicide. He was their top earning distributor. Other strange things keep popping up about this company that warrants caution. Even if the company is sound, the technical setup on the chart now favors a pull back. No worries Bill Ackman, the stock will start coming in shortly, though your entry may be a long shot. Cheers!
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