Wednesday, 12 February 2014

STX - battling to hold the 200 dma

Whilst the main market is likely seeing a minor retracement, Seagate (STX) remains especially weak, settling -0.3% @ $49.31. Price structure in the short term remains a bear flag, and STX might first need to test the rising 200 day MA - in the mid $45s, before resuming the longer term up trend.

STX, daily


Seagate remains one of my favourite companies, not least since as a computer tech, they are usually my hard drive of choice.

STX remains reasonably profitable (although certainly not on the level of AAPL, or GOOG), and with a valuation that remains unquestionably 'cheap' - with a forward PE in the 8s.

see key stats @ yahoo finance

Underlying MACD (blue bar histogram) on the daily cycle is extremely low, and should start to offer some upside in March.

Next earnings are due: late April