Tempur-Pedic International Inc. (NYSE: TPX)

Tempur-Pedic International Inc. engages in the manufacture, marketing, and distribution of bedding products in North America and internationally. It offers mattresses, pillows, and adjustable bed bases, as well as various cushions and other comfort products. It offers mattresses, pillows, and adjustable bed bases, as well as various cushions and other comfort products under TEMPUR and Tempur-Pedic brand names. The company sells its products through furniture and bedding retailers, department stores, hospitals, nursing homes, healthcare professionals, and medical retailers, as well as through its call center operations, company-owned stores, third party distributors, and Internet. Tempur-Pedic International Inc. was founded in 1989 and is headquartered in Lexington, Kentucky.
Before discussing potential trading opportunities, please take a look at the 1-year chart of TPX (Tempur-Pedic International, Inc) below with my added notations:
TPX had been rallying strongly since November up until the end of March. Over the last (3) months the stock had found support at the $45 level (red). In addition, the stock seemed to be hinting of a potential breakdown with its series of “lower highs” (blue) in the face of a rising stock market. Well, last week the stock broke that $45 support and should be moving lower overall from there.
The Tale of the Tape: TPX has broken its support at $45 and the stock has started moving lower. A short position could be entered on any rallies back up near $45 with a stop placed above that level. A break back above $45 would negate the forecast for a move lower.
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