Tandberg 19.11.2007

Today we start a small series where we will look at stocks that is being recommended for buying by the larger banks/trading companies. We will bring up a few of these cases from time to time just to see if our technical analysis coincide with these buying recommendations.
Our first stock to look at is Tandberg recommended by DNBNOR Markets today.
Today was a horrible day in the stock market where TAA also took part in that down movement with a fall of -3.8%. But do it looks like the stock is likely to start rising in the near future? Since October 18th this year the stock price has been in a more or less constant downward movement. Today the stock price ended at 113.50 NOK which is a new low for the last 6-7 months or so. We also see from ADX that the downward movement has formed a medium strong trend (and rising). RSI support the price movement but we also see from RSI that the stock is moving into the so called oversold area. We can see that there is a weak supportline at todays end price. We need to see tomorrow if this supportline is valid or not. But from our technical analysis should we buy this stock now or should we wait? We here at mytraderscorner.com is absolutely clear that we should wait to buy this stock as there are no guarantee that the fall in stock price is over for now. Our suggestion is to keep the stock in your watchlist and possibly buy it when RSI is crossing the 30 level upwards or even wait longer to see that the RSI bottoms and price bottoms is rising.