01/28/00 Thermo Electron (TMO)
Points to watch: Thermo
Electron is showing signs of life. On Wednesday, the stock moved
above both its 21-day and 55-day moving averages, and daily MACD gave a
buy signal.
Yesterday, the stock crossed
above its 200-day moving average (16.06) and broke through resistance at
16.13 (the December high). TMO finished the day yesterday up 0.94 at
16.50, after testing resistance at 17 intraday--a level which provided
resistance 7 times during August 1999.
Technical
indicators are positive: daily OBV turned up last Friday, and both daily
and weekly RSI and stochastics have turned up and moved out of oversold
territory.
A short term buy signal
would be given on a break above resistance at 17, with a retest of
longer-term resistance at 20-20.25 (a level which stopped rally attempts
in November 1998 and July 1999) then likely. A long term-buy signal
would be given on a break above 20.25, with upside resistance then at
22.3, 23.9, and 28.8. Support is at 15-15.3.
