Rotary Engineering is currently trading within a Up Trend Channel after forming a “Higher High, Higher Low” pattern. The stock just rebounded from 61.8% FR level (also the neckline of Inverted Head and Shoulders) and clear the 200D SMA resistance. Price Target is about $0.60.
| Next Earnings Announcement | 02/28/2013 |
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Previous analysis on Rotary Engineering breakout.
Rotary Engineering breakout from Inverted Head and Shoulders with a huge spike in volume. Target price for this breakout is about $0.58. It is better to wait for the retracement to test the 200D SMA and also the neckline before jumping in.
Rotary is currently trading within a rectangle. Rectangle’s resistance is $1.18 and rectangle’s support is $0.874.
In the near term, Rotary is going to test 20D MA resistance to see whether this rectangle pattern is still valid. Failing to break this 20D MA resistance and breaking the rectangle’s support will trigger a bearish down (a formation of lower low, lower high pattern) trend for Rotary.
