MacDonald Dettwiler and Associates Ltd. not presently a buy

Nov 13th, 2015 – 1 Comment

Meeting resistance at $82.50


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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Read more about Satellites and subsystems.


 

MDA LOGO

Good Day Lou,

I enjoy reading your articles and find them very informative.

I would like your take on “MacDonald Dettwiler and Associates Ltd”.

Thanks again for your time.

Andy

 

 

Hey Andy,

Thanks for the assignment and your kind words. They are both greatly appreciated.MacDonald Dettwiler and Associates Ltd. (MDA TSX) operates in the communications,surveillance, and intelligence sectors. The marquee product from the company’s history is the Canadarm made famous during the days of the space shuttle program. In today’s marketplace the company offers a variety of solutions including airborne surveillance systems, maritime information systems, communications satellites and subsystems, to name just a few.

 

An investigation of the charts will identify the trend, support, and resistance pertinent to MDA.

 

 

 

MDA

The three-year chart indicates that the multi-stage advance that started in late 2012 came to an end in May of 2015 as the stock pulled back from its 52-week high of $101.65. The first sign of sellers taking control of the market came in early June with the break below the 50-day moving average. The next negative signal was the breach of the 200-day moving average in early July. The final call to action came with the formation of a death cross in late July.

The shares hit a 52-week low of $70.54 in late August and by mid October made a short advance to current levels. The question now is if MDA still has more in it.

 

 

MDA2

The three-year chart highlights the buy signals generated by the MACD and the RSI in mid October as the stock broke above the 50-day moving average. What is visible is that MDA has pulled back from resistance near $82.50 and the momentum indicators are turning lower.

If the stock can move through $82.50 the next level of resistance would come near the 200-day moving average in the $87.50 range. The evidence at hand is not sufficient to make MDA a buy .

 

Next time I will inspect the charts of Kelso Technologies Inc. (KLS TSX) for Gordon.

 

Make it a profitable day and happy capitalism!

 

 

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