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.


AJ said...

Hi Steve,
I wonder if a declining 50 DMA would make this a better short position than a long one. This could get an oversold bounce, like you said, but I thing people might sell into any rally. Thoughts?

Anonymous said...

Hi AJ, yes I agree, longer term this does look bearish. However, a possible oversold bounce from here may seem plausible for a quick scalp trade towards $27. I'm using the 38.2% Fibonacci retracement level of the rally, or approx $25 to decide between being bullish or bearish.