STA : Hitting its 200 day EMA
March 14, 2011 Leave a comment
Although we predicted a dip to 25 for STA several weeks back, if today’s fall, which has already seen the stock hit its 200 day EMA at 25.90 is due to the Japan tragedy, we believe it is overdone, as the demand destruction argument is dubious at best. The charts point to 23 as next major support below 25, and from here there is a range of support down to 20.40 or so.
If 26 holds for an hour or so, we suspect a technical rebound to 27.50 may be forthcoming today. Tight stops are of course a must.