Wonderbread:
From a TA perspective, nxtl is a very difficult case at the moment. The stock has been oversold for weeks, and has fallen thru many levels of support. In an attempt to determine the reasons for this breakdown, you have to consider the current environment of increase competition, overvalued markets, and the huge amount of leverage on nextels balance sheet.
At what level will nextel find support, I do not think anyone knows for sure. Should the market continue to selloff, nextel will continue to decline. This is the time to ask yourself what you expect from this stock. If you are a short term trader, this is not the time to buy. If you are in this for the longer term and you own lower price stock, this may be the price to average up. If you bought in at higher prices, I would use a lot of caution in averaging down.
I believe the markets will reveal there short term strengths or weakness in the very near future. I particularly liked the housing numbers today, and the overall levels of economic activity. We may be in a transition phase, where markets shift from the high tech boom of recent years to a more traditional consumer led increase in economic activity. It appears that consumers have it all, low energy prices, cheap goods in the stores, and good pay. We may be thru with the pc and the intense work required to constant upgrade, learn new programs and heading to a new period of living it up. If this is the case, bring on the cell phones and anything related to telecommunications. I am looking for the current weakness to end soon and I cannot think of a better indicator than the numbers released by Chrysler today. They were spectacular and to me in a very real way obviate the decline in Asia. When nextel rolls thru its 200 day ma at 26, we will be ready to rock and roll.
Ken |
