10/29/99 Nam Tai Electronics (NTAI)
Points to watch:
Nam Tai endured a 22 month slide that
saw the stock fall from over 30 to a low of 7.75 on May 30th. The
stock has put in a bottom, and has been moving steadily higher over the
past 3 months.
The stock has now moved up into a strong
resistance band that exists from 17.22 (the 38% retracement of its
1997-1999 decline) to 18 on its weekly chart. Yesterday the stock
closed at 18, a level which has acted as resistance on 3 previous
occasions: 9/95, 3/98, and early October of this year. MACD hit a 2-year
high during yesterday's move to resistance.
A buy signal would be given on a break
above 18, and the stock would then next run into resistance at 20, and
then 22.9.
