|George Soros has made Westport Innovations (WPRT) one of his biggest holdings. This attracts other big investors who assume that Soros will make money on the stock and they want to go along for the ride.|
Westport Innovations is listed on both the Toronto stock market (WPT-T) and the NASDAQ (WPRT). Figure 1 is a weekly chart of the stock price listed on the Toronto market.
|FIGURE 1: WESTPORT INNOVATIONS, WEEKLY|
|Graphic provided by: Omnitrader.|
|In the chart in Figure 1 you see how the price has moved up from a low of $5.15 in September 2009 to its present high of $31.33. The chart shows the following:|
-Relative strength index (RSI) four-period indicator. This is suggesting a buy signal.
-RSI 10-period Indicator. This indicator is overbought, suggesting caution.
-Ergodic oscillator. This indicator is moving sideways.
However, the vote line on the OmniTrader chart is suggesting a buy signal, as given on September 6, 2011.
|FIGURE 2: WESTPORT INNOVATIONS, DAILY|
|Graphic provided by: OmniTrader.|
|The daily chart in Figure 2 shows that a new buy signal has been given on the vote line. This is confirmed by both the RSI four-period indicator and the RSI 10-period indicator as well as the ergodic oscillator. Note that the share price bounced off the long-term support line, a horizontal line drawn from previous highs. The present price is still below the stop-loss line drawn on the chart.|
With the three indicators confirming the buy signal, I would be a buyer of Westport Innovations at the present price.
|Address:||3256 West 24th Ave|
|Phone # for sales:||6042634214|
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