Knoll, Inc. (NYSE:KNL)

CAPS Rating: 5 out of 5

The Company is a designer and manufacturer of branded office furniture products and textiles.


Player Avatar CraigCa (< 20) Submitted: 10/17/2007 11:09:57 AM : Underperform Start Price: $19.64 KNL Score: +7.23

The 50-day and 200-day moving averages show a strong negative divergence, both in regards to each other and to the S&P500. However, the 10-day moving average has flattened over the previous couple of months and could even be signaling a trend reversal, as it is converging with the 50-day moving average. It has not yet done so yet, so this is not a concern yet, though it is worth watching. Due to the strong negative divergence between the 50-day and 200-day moving averages and the S&P500, and due to the fact that no clear trend is yet evident with the 10-day moving average, I am keeping and reiterating my underperform rating on this stock. It will be worth monitoring loosely in the future to see if the 10-day trend is indeed going to show a reversing trend, but is not a big concern to me at this time. If you initiate a new short position on this stock, I would monitor it fairly closely to see if the trend reversal is indeed forming, signaling that the short position should be closed. I would not initiate a long position in this stock at this time.

Featured Broker Partners