11/19/99 Navistar Inc (NAV)
Points to watch:
Navistar has lost nearly 40% of its
value since peaking at 56.25 in May. The stock is now trading near
two important support levels: 36, a level which has provided support this
month and which acted as resistance in March 1198; and 34.38, a level
which provided support in May and acted as resistance in May 1998.
Technical indicators continue to confirm
each move down by the stock. Daily MACD remains on its September
22nd sell signal, and weekly OBV, RSI, and stochastics are all at new
lows.
A sell short signal would be given if
the stock fails to hold support at 34.38, and the next downside support
levels would then come at 31, 29.63, and 26.5. Resistance is at
39.3-39.5.
