Name: Gilat Satellite Networks (Nasdaq: GILTF)
Last price: $2.20, as of April 10
Support to watch: $2
Resistance to watch: $2.70
Chart courtesy of Stockcharts.com
Gilat Satellite had a hard landing at $2, its lowest-ever price, following a continuous decline. The question is whether the share will manage to rebound upwards from $2, or whether it will cross that line and continue downward, to be buried in the danger zone of shares traded at low prices, in which many lose interest.
Since the share is at an all-time low after such a hard fall and on the basis of Wednesday’s trading chart, we may see the share attempt to rise higher than $2. If the rise occurs, we should examine it at two crucial points: $2.70 and $3. It is true that from where the share is now, a rise to $2.70, and especially to $3, would be considered a respectable surge. From a broader perspective, however, a rise to $2.70 constitutes a very slight correction, compared with the preceding plunge in the share. Short-term trading can be based on buying above $2, with a selling hedge order below $2, and a possible sale at $2.70. A rise above $2.70, and particularly above $3, will justify consideration of more serious buying for the longer term. Traders should not rush to buy the share below $2, since a fall below $2 will indicate a possible further decline.
Orbotech: A warning to shareholders
Name: Orbotech (Nasdaq: ORBK)
Last price: $27.43, as of April 10
Support to watch: $25
Resistance to watch: $28
In the course of reviewing Nasdaq-listed Israel shares for this column, the possibility of a further decline in the Orbotech share caught my attention. A fall below $27.50 will to a great degree confirm my suspicion; if this occurs, a substantial fall in the share to $25 can be anticipated. A move above $28 will allay the concern. If it happens, $28 will be tested as a support level.
The above recommendations were made by a person/s working in the investment industry, who may hold positions in securities mentioned in the column. This column should not be taken as advice to buy, sell or continue to hold any securities, and anyone acting on the advice of this column does so at his or her own risk.
This review was written before the opening of Thursday trading in New York.
Published by Israel's Business Arena on April 11, 2002