Wednesday, September 10, 2014

Gentex Corporation (NASDAQ: GNTX)

Gentex Corporation is engaged in designing, developing, manufacturing, and marketing automatic-dimming rearview mirrors and electronics for the automotive industry; variable dimmable aircraft windows for the aviation industry; and commercial smoke alarms and signaling devices for the fire protection industry worldwide. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors; automotive electronics; and interior and exterior non-automatic-dimming rearview mirrors with electronic features for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, tier one automotive mirror manufacturers, and various aftermarket and accessory customers.
Take a look at the 1-year chart of Gentex (NASDAQ: GNTX) with my added notations:
1-year chart of Gentex (NASDAQ: GNTX)
GNTX has been trading in a relatively tight range for the last 5 months. During that period of time the stock has formed a general resistance “zone” around $30 (red). In addition, the stock has also created a relatively clear level of support near $28 (blue). At some point the stock will have to break one of the two levels created by GNTX’s trading range.

The Tale of the Tape: GNTX has a clear level of support at $28 and a resistance zone near $30. The possible long positions on the stock would be either on a pullback to $28, or on a breakout above $30. The ideal short opportunities would be on a break below $28, or on a rally back up near $30.
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