Presto – It’s Magic!
- Posted by Greg Harmon
- on October 8th, 2012
They make small appliances and absorbent products, oh yeah, and work with the Department of Defense. Quite a broad mix. Maybe that is why National Presto, $NPK, is looking up. I noted the rounded bottom on the daily chart first back on September 9 and it finally above the resistance
National Presto, $NPK, Daily
level at 80.50 Monday. It has a bullish and rising Relative Strength Index (RSI) verging on being overbought, with a moving Average Convergence Divergence indicator (MACD) that is positive, both supporting a continued move higher on the daily chart. It also has over 12% short interest so a squeeze is possible. The weekly chart below shows a bit of potential resistance along the way
National Presto, $NPK, Weekly
higher at 84.40, just over the 200 week Simple Moving Average (SMA) before a full breakout but has a strong RSI and a growing MACD as well supporting it higher. The longer view on the monthly chart below shows it approaching the mid line between the Lower Median and Median Lines of the Andrew’s pitchfork suggesting that a key point for a move higher may also be along the 85-87
National Presto, $NPK, Monthly
area. Finally the 3-box reversal Point and Figure chart (PnF) carries a price objective of 100. A beauty in all time frames. There is one difficulty with this stock though. Since it does not have any options, the only way to protect your capital is with a stop loss, so you are subject to overnight gap risk.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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