BREAK AND RUN POTENTIALOne very nice thing is Bombardier over the past 6 months is that the stock has been quite predictable with regard to levels of support and resistance, and general tennants of Technical Analysis. Personally, I'm a huge fan of T.A., and if I go back several decades, it's probably what saved me to eventually thrive in the market versus washing out.
From the charts, and as I mentioned a couple of months ago, I would have put resistance closer to the $71.00 level, but it seems to be right here (ish) at around $68.00. I took another look, and ok, the resistance point isn't quite so clearly defined, so I'll concede that the current level qualifies.
But what is REALLY interesting is where the next resistance level is, and I really don't see any resistance worth noting all the way up to $101.00. Now, that may seem like a stretch for some people...as did the $30's a few months back...as did the $50's, as did the $68's. Imho, I strongly feel that Bombardier still has a lot of upward movement and that this movement is fully warranted given the company's position, progress, and dominance.
This position in Bombardier is an extremely rare hold for me. Even more rare, in fact unheard of for me in over 40 years in the market I've now also taken a second stock, Nano One Materials (NANO on the Tsx). It would be easy enough to say I'm just getting old, or somewhat tired of trading for a living, and both of these would be true. But make no mistake. If I actually take a position in a company and actually hold it, as I am now doing with both Bombardier and Nano, then I am doing so because I've assessed it enough to the point that I fully expect phenominal gains, more than I could make trading it. That has certainly been the case with Bombardier, and I absolutely STILL expect the same from this stock. In fact the day that I no longer hold that expectation, will be the day that I sell.
Is the stock worth trading? Somewhat I suppose, perhaps as a swing trade. But the stock has shown some strong ability to whipsaw, so I still think this would be tougher than worth the effort. I've traded out some position as a swing trade, but more to take a position in the other company I'm now holding. Will good lighting strike twice? I have no doubt it will.
My point here is this, and first, I'll say what I've always said. First and foremost, we are here to make money. Period. We are not here to cheer. We are here to make money. An assessment of a given stock does NOT include reference to how much you've made, or how much you've lost, or what the stock used to cost. It is ONLY an assessment of whether this is the BEST place to make that money, and what the upside potential is to make that money in a reasonable amount of time. Personally, if I actually "invest" in a company, I expect an enormous return in a relatively short period of time. So does Bombardier still hold that potential? Absolutely. That's the only reason why I'm still here.
I think there's an easy move up for Bombardier to the $100 level, and beyond that I'll reassess as the tools I use guide me. The stock certainly is looking strong here and I have no doubt we'll be seeing this new level in the near future.
Enjoy.