The story goes that that the Muddville 9 were losing by 2 runs heading into the bottom of the last inning. With two men on base in scoring position, Mighty Casey, the confident star player comes up to bat. He lets two pitches go by for strikes, sure he only needs one pitch. Then when the third pitch comes flying in he swings and misses. The Muddville team loses. “There is no joy in Muddville – mighty Casey has struck out.”
The poem “Casey at the Bat: A Ballad of the Republic Sung in the Year 1888” was popular over 125 years ago. Casey failed then. But Caseys General Stores Inc (NASDAQ:CASY) has another opportunity now.How will it end this time?
The chart above shows the run up from September through January in Caseys stock price. Since then though the stock pulled back just over 50% of the move up before basing and then moving back higher. On a broad scale, this establishes a possible AB=CD pattern that would target a move over 107 by mid September. Strong and confident with a bullish RSI and a rising MACD. like Casey of 1888.
But its the shorter timescale that brings the poem to mind. Anything can happen in any at bat even though the sum total over a season is great. The stock potential to 107 is like that, but with the current ‘at bat’ the Hammer that formed in the bull flag as it hit interim resistance at 92. A lot of room to the upside, but will Caseys strike out trying to break that flag this at bat? Look for 90.90 as a first step and then a move over 92. The company reports earnings next June 8th before the open. If Caseys strikes out this time, perhaps that at bat will be the one.
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