MOT – Motorola – The multinational telecommunication company saw its shares returning back to the main bullish support line at $6.05 increasing the odds of a possible trend reversal. From October 06 peak at $25.50 the High Pole pattern that developed dropped a hint of turnaround projecting a downside target at $16.20, level reached on August 07. The reversal realized on November 06 when the movement penetrated the bullish support line at $21.30 clearing the way for further contraction. The first wave of downturn has been contained by the double bottom pattern at $17.50 where prices started to swing sideways. The fall continued reaching $15.30 on August 07 when a corrective upmove temporarily changed the course gaining back some ground to $19.20. Prices turned down again dropping sharply and reaching the lows on November 08 at $3.00. A sideways movement with base at $3.00 and resistance at $4.90 extended until April 09 when the double top breakout at $4.60 followed by the triple top breakout at $5.00 triggered the trend reversal. On the way up a double top developed at $6.90 and now prices are struggling to guard the main bullish support line solidity. Relative Strength vs the market is positive for the long term but still negative short term predicting a period of underperformance for the stock. The weight of the evidence is still slightly on the buying side but this needs to be confirmed by the integrity of the long term bullish trendline. Stay long and increase at triple top breakout at 7.00 with medium term target at $9.10. In the long term the objective is set at $12.00. On the downside close all longs at triple bottom breakout at $5.90 which coincide with the penetration of the main bullish support line. Contraction may extend down to $4.70 and then to $4.20.
HSIC – Henry Schein, Inc. – Marketer of healthcare products and services to office-based healthcare practitioners, Henry Schein inc saw its shares finding support at $44.00 right on main bullish support line. From September 07 peak at $63.00 prices entered a distribution pattern trading sideways with base at $55.50. The movement extended until February 08 when the penetration of the main bullish support line followed by the triple bottom breakout at $55.00 changed the course switching the trend to bearish mode. The first wave of decline reached a turning point on July 08 at $49.00 when a corrective upmove gained back some ground to $60.00 before turning down again. A contraction to $41.00 followed by a reaction to $48.50, a former support level during the decline, anticipated the final sell off to $32.50 where a solid triple bottom developed. The reaction to the oversold condition spawned a nice up thrust which touched $39.50 before entering in a narrow sideways movement with base at $36.50 and resistance at $38.50. The March 09 piercing up move to $39.00 penetrated the main bearish resistance line and at the same time break through resistance triggering the trend reversal and clearing the way for further raise. Prices reached $45.40 on a consistent up move but lately the degree of ascent slowed down and now they found support at $44.00 on the main bullish support line testing its validity. Relative Strength vs the market is positive in the long run predicting a future of outperformance. Stay long and increase at double top breakout at $48.00 with short term target set at $50.50 and on the medium term at $57.50. On the downside close all longs at penetration of the main bullish support line now crossing at $43.50 with possible contraction down to $37.00.