RE:THE DAWN OF AN INTERESTING MOMENTI should mention too that there is one other catalyst for continued upside. The recent downdraft in Bombardier would have further taken out any weak hands. None of us like that downside when it happens, but after it's over, there is a fringe benefit as the stock resumes the upside move. Basically, the stock is "cleaned" in the defined region, in this case from the $24-$34 area.It's definitely why we've already seen a strong bounce back up to the $28's on relatively low volume. In essence, there just isn't a lot of stock available in this price area.
So make this point #4 to my last post of upside catalysts. Should make for an intersting few weeks coming up.
p.s. I have to say, the general trading in Bombardier is still a little perplexing, especially the odd downdraft that comes out of nowhere, build on volume that is so light it can only be viewed as irrelevant.....but there it is. It's annoying, although I have gotten used to it as part of Bombardier's current "trading personality". Of course this also seems to work in the opposite upside direction. Somehow I don't seem to complain about that as much though. ;)
Starsearcher80 wrote: I think an "interesting moment" for Bombardier may be upon us. Consider the following:
1) We are now almost at the window of anticipation buying for the quarter. Typically, this starts to show about 2 weeks prior, so we might still be a touch early. Having said that, the expectation of another stong quarter isn't lost on those who play the anticipation buying game. I think we're going to see continued strong order flow, and I also think there will be some additional revenue surprises start to come in via the greatly expanded service centres. While anticipation buying is often the world of swing traders and can be a powerful motivator to share price, I think the even bigger motivator will be futher confirmation that Bombardier is now on a very strong footing.
2) From a technical standpoint, the 20, 50, and 100 day moving averages are almost on top of each other, all around $29.00. Yes, this provides some resistance, but if Bombardier breaks through this area (and I think it will), it creates some new technical buying. Given that the lines are converging right now on top of each other, the move can be more powerful than it might otherwise be if there were separation.
3) The biggest motivator is that the Dow is now down a staggaring 5000 points since mid August, essentially 7 weeks. And as per my last post, there are clear signs of capitulation with Retail finally rolling over. Now, much as I would like Bombardier to only climb, being at $27.50-$28.00ish in the face of this massive market meltdown is pretty darn good. In fact, you could argue from a technical point that the pullback is even within the bounds of "normal" given the extremely quick rise from the $18.'s. If the market actually puts in a bottom, the stock will finally get a tailwind rather than the in-your-face hurricane that the market has endured over the past while. Of course, that's the big question right now; has the market put in a real bottom. We won't know until it is in the rear-view mirror, but when the fear is that palpable, and right now it is, we are typically close to the bottom. We'll see what comes.
But back to that "interesting moment". If you take all three of the above points, and if they were to fire off at roughly the same time, what you have is a real upside potential coming from multiple fronts. To be sure, this idea is still percolating and is certainly not a given. But it's out there, and coming in to view eough that I think it's worth mentioning here for consideration.