Telefonos De Mexico, A long Play? (TMX)

Submitted by Maher on Mon, 08/29/2011 - 21:25

TMX sold off from a high of $19.28 on May 20th of this year and bottomed out a month later at $15.58. The stock bounced to the 20 EMA and then headed lower again testing the $15.60 support and gapping up strongly on August 1st completing a double bottom reversal pattern. Since then, the stock retraced 50% of the last wave up and looks ready to head higher.

TMX closed right on the resistance line in today's session. Buy the breakout and hold into the test of the last wave high around $18. You can then tighten up stops in anticipation of a test of May's high around $19.25.

TMX Dail Chart

TMX Daily Chart

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