Monday, January 8, 2007

MOT. A good reason to choose a short position?



In our opinion in the next months the price of Motorola (MOT) stock will be in some trouble. In the chart we see clear evidence of the breakdown of six month low suport. Looking for a short position we need to be carefull because the price will tend to fill the gap, but if we manage well that risk , for example, waiting for a light volume rally before resuming the downtrend, we can have a good oportunity to win with a fall in the price. Again, we can be more agressive and enter short as soon as we have intraday evidence for doing that.

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