Jill, I really can't see much that encourages me about MOT and its future.
MOT is trading below the 200 sma. That's not good. Furthermore, it has formed a lower low and a lower high below the 200 sma after a big volume gap down (actually twice... in December and in January):
stockcharts.com[w,a]daclyyay[pb50!b200][vc60][iLg!Lp14,3,3]&pref=G
The only criteria left to define a new downtrend is a bear cross, which appears imminent.
All this indicates professional selling, and therefore no way to fuel a sustained uptrend. It also nearly confirms that MOT is in a long-term downtrend.
There are almost no encouraging signs technically, as you will see on the following chart:
139.142.147.218
You can also see on this chart that MOT is flirting with chart support just below, and that the BBs have contracted and will be pushed open soon. Very likely, they will be pushed open to the downside, not the upside.
Chart support just below $15 will be tested soon, then MOT will most likely trade down to the final support level, which is the lower regression channel rail that defines the bottom of the current uptrend that began in October 2002:
139.142.147.218
If MOT fails there, it is dead money.
If I were looking to go long MOT, that is the point I would look for a possible reversal to the upside, but not until.
IMHO, the prospects for MOT at this point look pretty bleak, both short term and medium term, and probably also long term (but that will be resolved for sure one way or another at the lower rail of the regression channel).
T |
