MOT of NYSE Trend Analysis
LONG TERM: (See the attached 4-year weekly logarithmic chart)
MOT fell down in a long-term downtrend (orange) in one year from 38.00 to
the 7.30-bottom support (gray). Total loss in stock price was 80.79%. There
were important supports at 19.44 (blue), 12.25 (red) and 19.44 (green) but
they were all broken down and turned into resistance. However, below the
12.25-neckline (red), MOT formed a meaningful, beautiful double bottom
(blue). MOT bottomed at 7.30 and it broke up the long-term downtrend
(orange). The 12.25-neckline (red) was broken up and tested as a support.
Then it rallied straight to 20.89, gaining a hovering 186% in a year, but it
could not break up the 19.44-resistance and turned down. The uptrend line
(pink) will be tested soon, but it is hard to say that the bull market is
over for MOT. The long-term outlook is still bullish.
SHORT TERM: (See the attached 6-month daily logarithmic chart)
On the daily chart a double top (purple) pattern can be easily seen.
Recently a bullish ascending triangle (red) is formed which may show that
the current downtrend (brown) is approaching an end. Actually the target of
the double top is (20.89-17.98=2.91; 17.98-2.91=15.07) and this target has
already been reached (and even exceeded to the downside). Following a few
days of consolidation expect a sharp upside breakout. The short-term outlook
is also bullish.
Americanbulls.com posted a timely SELL signal 44 days ago. If you are still
holding this stock, that is fine. If you do not have this stock and are
interested in it, we advise you to wait for a BUY signal, which may be