Technically (no pun intended), the next real resistance is the old high. But this depends on your perspective. Today, THQI broke the resistance at $27.5 or so, because of the high volume. Notice high volume accompanied the breakout from $24.5 a few weeks ago. I believe we'll see the old highs in 2 weeks or less. Next week, we should be around $30. The only resistance at $30 will be option-related, as options dealers might sell or short the stock to balance their options positions. But no one knows for sure.
One thing I'm sure of, though, is that once THQI finally breaks $32 on high volume, and retests $32 as new support, the stock is going to fly. It could reach $40 within a few weeks of breaking to new highs. I still think the stock can reach $55 this year, although based on its long-term trading channel, it could get as high as $65. I think it could be worth at least $75, especially considering the accretive effect it would have on the bottom line of many companies, such as ERTS (in the case of a buyout).
Todd |
