Stock Technical Analysis: Rooting For A Steeper Pullback in AMSC
Written by Lawrence on September 25, 2009
We have a request for a stock technical analysis of American Superconductor (AMSC) and here’s our view! In the short term, AMSC does not look too good. The stock has retraced to support at about $29-$30 and is hovering just below the 20-day and 50-day moving average. Piercing below the two moving averages does not bode well for the stock price in the short term.
Although AMSC has pulled back quite a bit to the current support level, the stock seems to have more downside to go before a more meaningful bounce can take place. For one, the downside volume is considerably greater than the upside volume during the recent decline. Also, a lower trendline can be drawn below current prices, indicating possible support at lower price levels. In short, avoid AMSC until it retraces further to the lower trendline.
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