On TA basis, IOM's weekly chart is under RSI and Stochastic sell signals, which will limit any short term up move. Daily chart is slightly positive, but under the more dominant the weekly chart. Short term (10 days), the up potential is only to 7 to 7 1/4. For
intermediate term (6 - 12 weeks), the up potential is 8 to 9. Support is at 6. If support at 6 is broken, then the next support is 3. In the intermediate term, it doesn't look like it can decisively break down below 6, unless there is a severe downdraft in the overall market. I think IOM is tradable between 5 7/8 and 6 7/8, with 5 3/4 stop. If it breaks down below 5 3/4, it is likely to go down near 3. At that point, it should quickly rise back up to 5.
In the near term, Castlewood's ORB may be a huge factor (big shadow) on IOM. I expect price pressure on Zip and Jaz when ORB come out to retail shelves. Looking forward to the next three years, expect more stiff competitions, as this portable drives will become smaller and very compact. Thus far, IOM has been fortunate to weather the SYQT and Avatar storms, and primarily due to SYQT's poor reliability and Avatar's lack of marketing savvy. Sooner or later, IOM's technology will be surpassed. It appears to me that IOM disks are priced too high and that has hindered a totally widespread use of Zip and Jaz. Presently, the market is not hooked on IOM's products. Present users of Zip and Jaz have not developed loyalty. They and potential users of the portable storage media will go to the more affordable and realistically priced products.
Just a bubba's opinion. |
