Motorola: A Technician's Look (MOT)

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Motorola (MOT) announced it has completed the sale of its automotive electronics business to tire-maker Continental AG for $1 billion. The company is keeping portions of its auto-related business dealing with communications technology.

On the technical side, MOT is still moving within a decreasing channel. At the moment it is close to the upper descending trendline:

The last relative low was printed on a positive divergence of Bollinger %b(Close), which measures the distance of the close from the lower Bollinger Band. This divergence indicates that MOT weakness might be over for the moment. Prices managed to rebound printing 3 consecutive up closes, getting very close to the resistance. Likely, more accumulation is needed before breaking out the channel.

I would wait for a short term formation on future weakness before trying a long trade. $21 and $22 are the objectives to the upside.

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Tagged: , Internet Information Providers, Technical Analysis
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