Flextronics (FLEX) Looking Strong
08/28/2009 12:01 am EST
On April 17, I said, "FLEX has broken from a five-month consolidation. The stock has already run from $3 to $3.81 in just a week, but FLEX has broken out from a powerful cup-and-handle chart formation that could add another full point to the advance.” I went on that “The target is just under $5 at the 200-day moving average."
On July 27, I said, "Following the breakout in April, FLEX executed a gold cross at slightly under $4, and issued a buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR), at $4 on July 9. This resulted in an immediate pop to $5."
On July 22, S&P raised FLEX from a "hold" to a "buy" with a 12-month target of $7, but from the technical side, the target looks more like $8 to $9.
The target of $9 is still valid and supported by new volume and undervalued Moving Average Convergence/Divergence (MACD).
By Sam Collins of OptionsZone.com