This stock has clearly been the “smart money”. having discounted the current economic slowdown. Now it may be time to accumulate for the perception and expectation of some stabilization or even a pickup in activity.
Sentiment and fundamentals are clearly reflecting widespread negativity. But technically it is ripe for accumulation having pulled back to major multi-year support.
That call is working today!
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Nymph’s Fibo Take…We have had the same pattern since the start of june, Mainly we have been hitting resistance and selling at a Key Fibo Moving Average. This pattern isn’t done yet…this is the set up I see on the SPX…On the Daily multi monthly chart the SPX has a couple of Moving Averages its bouncing around on…the key 200 at 1265.18, four days ago it found buyers at the 200MA support,( like it did 8 days ago). 8 days ago it rallied into the 144MA hit resistance and sold. Today the 144MA is at 1300.60, yet there is a minor resistance at 1287.29 with the 21MA sitting right there. Until the 144MA is taken out I see no change in the trend thru my fibo eyes. Plus, we have a 50% retrace of Feb 2011 highs and March 2011 lows at 1295.62 that has caused it problems in June also….so this may not be over at all.