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Play of the Day (For Thursday)
- SBL INFO -
Quote
 
Profile
News
 
Interactive Chart
Wednesday, March 14, 2001

SBL - Symbol Technologies $47.20 -2.45 (+0.79)

Tuesday's Comment:

Symbol Technologies' scanning products have become indispensable for a myriad number of industries, ranging from heavy manufacturing to retail package delivery. A 3:2 split was announced on February 27th when the stock was trading at $41.82. The split will be made payable on April 16th. SBL might resume its split run, now that the market appears to have put in a short-term bottom. The stock initially took off following the split announcement and peaked at $56.00 a few days later. After a subsequent pullback, SBL appears poised to move higher. The MACD survived a test yesterday and has now issued a buy signal. The RSI has plenty of room to support a rally before indicating an overbought condition. What's more, today's low print of $45.75 successfully tested trendline support. Any positive move tomorrow, accompanied by first hour trading volume over 200,000 shares, may provide possible entry opportunities.

Wednesday's Update:

Symbol sold off along with the rest of the market on Wednesday but found good support at its 40-dma. We are also encouraged by the fact that SBL finished the rocky session in the upper half of its daily price bar. Turning to the fundamentals, further evidence that the corporate PDA market is still humming along came recently from Sears (NYSE:S). It placed an order to buy 15,000 devices from Symbol to use for inventory and price change purposes. This underlying strength in corporate wireless devices may be serving to prop up the stock in what has certainly been a turbulent market environment. Switching to Symbol's charts, we like what we see in Symbol's weekly chart. The weekly chart shows a clear ascending triangle that is ready to break to the upside. The daily chart, although not nearly as pretty, still shows a stock that has become overbought and which subsequently sold off to support levels created by its base pattern. In addition, the 10, 20, 40 and 50-dmas are now all firmly above the 200-dma. Although this is generally a lagging indicator, it is bullish nonetheless. Looking forward, new plays could be initiated on a bounce off the 40-dma, now at $45.50, or a break above yesterday's high of $50. In either event, look for volume to be on track to finish the session at better than 1 million shares traded. We are leaving our stops firm at $45.25 to limit losses.


Picked on March 13th @ $49.65
Change since picked -2.45
Stop Loss @ $45.25 


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