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I've copied this thread from the options folder because I'm trading the options on it, but SA you should feel free to move it to wherever you think it's more appropriate.

The chart, as always, is annotated in my public chartbook in the link below.

Here are the things that I think are worthy of note:

1. Bearish divergence in many of the major indicators, and the price. This means the price is going one way, while the indicators are going the other way. The price is making higher highs, but the indicators are not making higher highs, and in this case, even going lower.
--> this has been taking place since august 18

2. Top of channel resistance is noteworthy since this is part of a longer-term pattern and has stood the test of time for several months.

3. Exhaustion gap on Friday with spinning top close as witnessed by higher than normal volume. This means that the bulls met a large block of shares and could not penetrate that level, and ended pretty much equal to where the price opened.

4. Fanline support is not holding and in particular, the third fanline may be penetrated soon. You can read more about this is Technical Analysis of Stocktrends, but basically fanlines are a way to confirm a trend reversal or loss of momentum in an ongoing uptrend.

5. Fundamentals suggest a decrease in demand. Despite the fact that most of us are technical traders here. The fundamentals of the recent housing market suggest that the demand for this company's services and products, which are in the residential and commercial housing sectors, will dwindle. Who's going to be building megamansions in the next quarter? In light of this, the slight boost in demand due to Ike will not be enough to keep the PPS of the stock at this overbought range.

6. Insider transactions suggest even the executives and board members think the stock is worth selling. I often look at insider transactions before putting in a larger positions and it's evident from the insider sells that even the company itself thinks that the price will not stay this high for long.

SO WHERE IS THE RESISTANCE AND TARGET PRICE TO COVER SHORTS OR EXECUTE PUTS?

The fib retracements are line with other indicators of support price at $14 and then $13. The bottom of the channel is currently at about $12.25. Any of these prices are potential exit points depending on the chart evolves. Just as a general rule, I'd lean towards $13 since the expiry date of my options isn't for quite a few weeks, and experience tells me that the gap needs to be closed before there can be any more rallying to higher highs.

Hope this was helpful!