Technical Analysis of Financial Markets

Thursday, June 28, 2007

Mattel, Inc. (MAT)

Mattel, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of a range of toy products worldwide. Its products include fashion dolls and accessories, vehicles and playsets, and games and puzzles. Product portfolio spans from Barbie, Hot Wheels to Fisher-Price. Since August 2006, stock price has remained above its 50-day moving average rallying 70%. A recent break of this moving average has seen price action find possible support at the 38.2% Fibonacci retracement of the rally, or approx $25. With a crossover of oversold stochastics and RSI gaining above 30, an entrance to a buy-position should pose minimal risk. Stop-loss (or sell-position entrance) at close below 200-day moving average for a price target towards the 61.8% Fibonacci retracement level.

Monday, June 04, 2007

Motorola, Inc. (MOT)

Since the breakdown beginning mid-October 2006, Motorola has declined over 50% with price action remaining bounded by the 50-day moving average. Recent breakout from the 50-day moving average now serving as support may signal a trend-reversal. RSI is gaining momentum with sustainable support at 50 since the breakdown occurred 8 months ago. Stop-loss close below 50-day moving average. Jefferies maintains a $19 price target; Raymond James has a strong buy recommendation: