My read of AMTX is neutral to bearish near-term. Looking at the
overall high-tech market, it has been in a correction for more than
a week since the NASDAQ index climbed from a low of 1020 on
August 24 to 1260 about a week ago. At 1250, it met the
resistence established early in the summer and the market apparently
found an excuse to take a rest. Looking at the chart alone, this
current correction may take the index to 1200, so we might have
20 more points to go. However, 1220 is itself a weak support and
we'll watch if it will penetrate through this level today. Next, let's
look at the few leaders in the communication sector such as CSCO
and ASND. Cisco has been in a correction since early October when it
hit its all-time high of 69. It has been down 10 points in the last
two weeks but found its support at 59 monday and bounced off quite
strongly from this support level. Unless the market continued
to tank badly which I don't see how, CSCO will go up from here.
The case with ASND is quite similar. It hit the resistance at 70 and
has been down slightly more than 10 points over the last two weeks.
It tested the 58 support level yesterday and closed at 60. It it can
hold at this level, ASND should start to come back to test the new
high again. With CSCO and ASND coming back, the whole communication
sector should follow.
In the case of AMTX, it's unfortunate that it closed below 21 yesterday,
below its current support level. Since it closed decisively below
21, it'll run its course until it finds its next support level, which
is 18. Assumed that NASDAQ and the communication sector will rebound
in the following days, AMTX should bounce off from 18 strongly and
will try to climb back to trade at the 21-25 range. However, it'll
take a miracle to see AMATI to break the 25 resistance.
I've been an honest reader of this thread since last spring but have
never posted. I enjoyed reading the posts by many contributors here,
including Techie, Jim Wilkinson, Pat, and many many others. Let's
hope that AMATI won't disappoint us too much!
Bluesky Qin |
