G
12/16/98 Magna Intl (MGA) Points to watch: Magna's October to December rally ended December 8 after failing to break through Gann angle resistance at 69. During the stock's rally it was unable to make a sustained move above its 200 day moving average (now at 67.75). The 200 day M.A. has provided resistance since August. Extremely strong overhead resistance now exists at 67.5 (the 50% retracement of the April to October decline on the weekly chart). 67.5 is the upper end of the gap created on March 12th . Stochastics showed strong divergence during last week's rally peak and has given a sell signal. CCI, MACD, and %R have also all given sell signals. The stock broke below support at 64.75 on Monday and may be shorted below the weak support that exists at 62.125, placing a stop near resistance at 67.5. |
