Nam Tai Electronics – Added to Watchlist

30 Apr

NTE stock had a huge down day today dropping 31% and extremely high volume but formed a nice wick by end of trading day today. Resistance for this stock seems to be at the $6.50 level so I decided to add this stock to my watch list. Looking for it to have two or three more down days towards resistance, and then, hopefully a nice swing low develops. Stochastics reads 13.96 and pointed downwards.

I put this on my watch list more as an interesting case study than something I would actually trade. The reason is I haven’t studied many cases in which a stock drops 31%. Is a stock with such a large percentage drop in one day able to recover in the near future? Does support and resistance work in these types of instances? As they say, watch and learn.

Here’s NTE stock chart for today:

NTE stock chart 4/29/2013

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