Moment Of Truth For MOT
This morning
I was running a weekly chart analysis of Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating) and something interesting
caught my eye. As you can see from the chart below, MOT has had a substantial
rise since Feb. 23 from 11.38 to 16.74 as of the May 15 high. That rally
is basically 5.3 points. The previous rally in MOT ended on Nov. 17, 2001.
That rally was 5.3 points as well.Â
We call this symmetry. In fact, the last
three rallies have been less than 7 points. After each of those rallies there
was a sell off that ranged from 4.2 to 7.5 points. The current rally is now
facing a key Fibonacci price resistance decision from 16.73-18.29. This zone
has eight price levels. Each level strengthens the resistance zone. I also have
a confluence in time pointing to the week of June 1 as a potential cycle high.
Remember, this is a weekly chart study.Â
So, if MOT fails to clear this zone
around our time cycles then I’ll be looking to take longs off the table, and
even consider short opportunities as they present themselves. On the flipside,
if MOT climbs through this zone, then the trend would definitely be to the upside,
and I would look to buy pullbacks against Fibonacci price support zones after
clearing this resistance area. Bottom line: MOT is now facing a significant
price decision from 16.73-18.29. With this key price decision in focus, buy
and sell decisions can now be made.
