TT, Re: MOT ready?
I decided to take a look see, and my first step, usually the chart, seems to indicate to me that there is a major resistance barrier to break thru at around $56-57. I'd be careful.
Normally I would feel comfortable with a roller that did not have to deal with support and resistance issues. These rollers should roll between predetermined, and proven highs and lows. The play if you were to buy, should be to get in after it breaks $57-58, and then has it's shot at previous highs this year. For a couple of dollars lost, you may gain some piece of mind knowing that MOT has turned its previous resistance into its new support line. This comment is purely from a novice technical analysis, but I think it holds water.
These plays are strictly for technical reasons, and fundamentals generally do not enter the picture. I do however try to understand from an industry group point of view, why a particular company should reverse trend at pre determined points.
My first post to this site (6 mo. ago)told of NSM, a semi co., which was near its lowest support in a year, then $13. Industry was slow, intel near $70, and reversal for the entire industry was due. NSM trading range was $13 to $24. with an all time high near $31. Today its at $26. In all probability, it will exceed their highs, but will return at least back to their new support of $24. BUT, I would rather buy after it has demonstrated a definitive trend reversal and moved up a couple points, rather than chance it breaking thru its support and heads down to its former support of $13.
I know its long in the tooth, but I'm happy to see this site improve.
Bill MOnier |
