By Relmor Demitrius -
Closing out the week on Friday, shares of Motorola Inc. (NYSE: MOT) were down 6 cents to $7.92. This is on a day the main markets saw mostly up action, as well as strong trading over resistance lines all week. S&P 500 broke and held over its 1,100 resistance level as well as the Dow Jones holding over 10,400 and more importantly 10,450. The back and forth consolidation action of Motorola last week should make for a nice trade this week.
Last week I saw Power Shares QQQ (NASDAQ:QQQQ) to be a nice hold. From the low range on Monday to end of week Friday, the stock went up around 2%. I thought we would see the main markets consolidate a bit and move up on a strong week and we indeed did see that. I mentioned this week we should look for a technology stock that looks bullish and poised to do well that may have been lagging. Motorola looks as good as any right now to see significant upside going into this week. Summer dull drums for technology stocks may just be ending.
Looking at the chart, it is currently only 2 weeks removed from a golden cross, which is the 50 day moving average crossing higher than the 200 day moving average. 10 day moving average is turning up as is the 50 day. The 20 day moving average is flattening and looking to recover. Looking at the MACD indicator it is in a bullish crossover right now on the 9 Day EMA and the 12/26 MACD signal line. The cross occurred well over the zero line which is considered even more bullish. I believe Friday was just a consolidation day and this small down dip could be bought into for some gains this week. Look for $7.70 line to hold and this stock could see $8.30 to $8.40 before the end of the week.
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By Relmor Demitrius
By Relmor Demitrius
