Being flexible with Flextronics

• Posted by Greg Harmon
• on October 14th, 2015

I like to say that Technical Analysis is good at showing Point of Reflection, not Points of Inflection. By that I mean it can highlight where changes might occur in a stock price, but not tell you where it will happen. It gives you places to look for opportunities, and often you need to be flexible and bend both ways like bamboo.

Flextronics ($FLEX) is a good example of that. For the past 16 months the stock has moved around a very tight pivot point form 11.30 to 11.50. Ten times the range has stopped the stock trend and reversed it. But twice the price moved through it like that range was not important. The chart below shows this.

As it approaches the pivot area for the 13th time it has some real positive momentum. The RSI is making a 6 month high and rising in the bullish zone. The MACD is also rising and making a 6 month high as it turns positive. And the Bollinger Bands® are opening to the upside to allow it to run higher. Will it break through and head toward the previous highs? Or will it get knocked back? Be flexible as you plan your attack.

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