Kapuso media company GMA Network (stock symbol: GMA7) has been bleeding red these days. This is quite a different picture from the one we’ve seen in my post back in January.
Tight-ranged, gapping action has been seen today in this stock, and my concern is price could continue to move lower.
Range trading could be seen in the next few weeks or months. We have near-term support at November 21’s 7.18 low (which if broken, exposes the late-December 2011 low at 6.20). January 21 high at 9.04 is the initial resistance, followed by the 10.00-11.00 area.
The MACD Oscillator (MACD-O) has stayed below the zero line for close to two months now. Do you think MACD-O will move lower?
TP’s Advice: Avoid this stock for now. It’s better to wait it out and see if the near-term support holds before you decide to jump in. Better yet, look at other more attractive stocks.
Do you have GMA7 in your portfolio? Share your thoughts below!