Does anyone have an interest in Benchmark Electronics (BHE) or follow this company? The fundamentals are excellent, the stock is relatively cheap, and the technicals appear to be setting up a breakout from an acsending triangle. A continuation of the strong market could be the catalyst for a technical breakout, especially if the EMS stocks do well. FLEX, JBL, CLS, and even SANM, which rallied strongly after it got two upgrades last week, look pretty good to me. If BHE breaks out, the MACD would likely cross over the zero line, confirming the move. BHE held support at its 200 day moving average (30.94) a couple of weeks ago, and at its 50 day moving average (32.22) last week.
I can't draw trendlines on this chart, stockcharts.com[m,a]daclyyay[db][pb50!b200][vc60][iUb14!La12,26,9]&pref=G
but one can see the rising lows from late January to today and flat line resistance at about 33, setting up an ascending triangle.
Looking at the longer term chart, stockcharts.com[m,a]daclyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G if BHE breaks above the short term resistance at about 33, it looks like it could test the 52 week high near 39, which is also close to the mean target set by the 14 analysts that follow the company.
It might be less risky to buy BHE if it clears resistance, and then put a sell stop in at about 32.60, but this stock looks like an odds on favorite to break out next week if the Nasdaq rallies. Comments anyone?
Thanks,
Dan |
