The technology group has been lagging the general market for the last month but some industries within the group look strong. The electronic equipment industry is showing a one month positive relative strength against the Dow, within that group Flextronics is shinning with a RS above 10%.
Last Thursday after market close the company announced results for its second quarter ended September 30, net sales increased $622 million or 8% and the Co. generated $176 million of free cash flow for the quarter.
FLEX was trading inside a perfect up trending channel since mid-august, the upper line was broken in October 10 and seven days later it seemed that the price was returning to the channel.
The day following the announcement Flex broke decisively above the upper channel line closing almost 8% up with a super strong volume.
Channel measuring techniques result in a 7.30 immediate target for a quick 10% gain after today´s 6.63 close. The upper channel must act as support.
Disclosure: I bought FLEX today.
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- Erick Stern
- I am a civil engineer who likes charts, to me, speculating in the markets is both a hobby and a second profession and in my view the stock market is the most honest environment, since it is only your knowledge and preparation that matters. I live, and work in the construction industry, in the Dominican Republic. I read and answer all my mail so please feel free to write email@example.com Thanks, Erick