P&F analysis for PMTC:
Good news and bad news as reflected on PMTC's p&f chart. The stock just broke the Bearish Resistance Line (BRL) with a buy signal at $18, however, the stock immediately pulled back in Bull Trap fashion and is one box away from a High Pole at the Bearish Resistance Line (HPB) at $15 1/2. Bull markets can work wonders to right the wrongs of bearish p&f charts (see the HPB on C's chart before it's great recent runup), which PMTC's had been and still is to a larger degree.
PMTC's RS is bearish and in a column of O's which is very bearish. The break of the BRL was bullish, but the stock needs to turn up into X's on it's RS chart to turn the main trend of the stock around.
If PMTC visits $15 1/2, I suspect the stock will visit it's "unofficial" BSL at $14 triple bottom sell signal would be given at $13 and would be very bad news for the stock. If you believe in the company, then a TRADING buy close to the BSL would give you lots of upside room until the brl at $21. The price objective is $26. For a longer term play, I'd much rather see the stock move to $19 1/2. This would undoubtedly move the RS chart into X's and would clear the possibility of a Bull Trap, AND, would clear 3 previous tops between $18 - $18 1/2. This would cause you to miss a good % off the bottom, however, the old highs are in the mid $30's and that would be a great % increase from the $19 level.
JMHO, of course.
Bruce |
