|On February 27, 2003, the share price for Ati Technologiy Inc. (ATY-T) bottomed at $5.68, falling from a high of $24.95 reached on January 4, 2002. Since then the share has recovered exceptionally well. Is it worth accumulating now?|
|ATI Technology, Inc.|
|Graphic provided by: AdvancedGET.|
|Looking at a daily chart you can see the following:|
1. An Elliott wave count that suggests the share could be tracing a rather complicated 4th wave retracement. This does look very likely as Wave II was a simple wave. Although I have shown where I believe the 4th wave ends, I have placed an "X" as an alternate low for the completion of the 4th wave.
2. I have drawn a long-term trendline from the start of Wave I and the low of Wave II. This trendline has not been violated and is still in effect.
3. I have drawn a parallel from the top of wave 1. This trendline is acting as a support level for Wave 4.
4. Finally, I have drawn what appears to be a consolidation triangle for Wave 4. This gives me a target of $34.81 should the price break out above $21.36. The target is calculated as follows: $21.49 - $5.68 = 15.81 + 19.00 = 34.81.
At the present price of $21.33 and with a 10% stop-loss, my stop would be at $19.20 with a loss of $2.13. With a profit ratio of 2.5:1, I would need a profit of $5.35. My actual profit, should my target of $34.81 be reached, is $13.48.
|I have added this company to my watch list and recommend it as a buy should the price break above $21.36.|
|Address:||3256 West 24th Ave|
|Phone # for sales:||6042634214|
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