Ecolab (ECL) 11/27/09 PriceWatch Alert Technicals Showing Bearish

Posted: Thursday, November 26, 2009 8:18 AM EDT

Ecolab (NYSE: ECL) closed yesterday at $45.29. So far the stock has hit a 52-week low of $29.27 and 52-week high of $47.88. Ecolab stock has been showing support around 44.59 and resistance in the 45.85 range. Technical indicators for the stock are Bearish and S&P gives ECL a positive 4 STAR (out of 5) buy rating. ECL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 45 covered call (ECL AI) for a net debit in the $43.84 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 3.20% downside protection and a 2.65% assigned return rate for a 19.32% annualized return rate (comparison purposes only). Ecolab has a current annual dividend yield of 1.24%. [FBB-Seven Summits Research]

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