Nortel.....Moving Higher
Back on December 20th, I showed a chart of Nortel and why I was bullish on this stock. Basically it was breaking out of a very tight weekly Bollinger band contraction with very good volume. Today Nortel had a nice move to the upside on news that it will slash 2,900 jobs, or 8.5 percent of its workforce, over the next two years and shift another 1,000 employees to lower-cost locations like China, India and Mexico.
Notice the way Nortel closed yesterday and the way it gapped up today on the best volume we've seen in months. I think we'll see some more upside movement given the current daily setup and the larger weekly breakout that took place in December.
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2 comments:
NT hit the 61.8% retracement at $29.32 today from the entire move down (from $35.70 to $19). I love to fade and reverse those types of barriers for a quick trade. This Fib level almost never fails as a reversal of some modest extent. See how activity holds above 27.50 now. Option expiration is next week as well.
Good point, I'll watch that level
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