Gentex Corporation (GNTX)

[dmlabuda]

Daily Chart Analysis - Yes, I would venture to say that swing traders following GNTX have had a pretty good time profiting from all the swing I see here. What we currently have on this chart is a broad Head and Shoulder's Top formation. As you may know, a Head and Shoulder's Top is considered a "Kiss of Death" that generally indicates the price will continue lower. According to Head and Shoulder's Price Prediction Methodology (PPM), we can expect prices to fall to approximately $21.75. Given the Oversold conditions of the current market coupled with a recent high volume spike, my opinion is that we could easily see an attempt to rally now that will at least partially fill the breakaway Gap seen between $24.75 and $24.60 (or so) on the chart below. Following that, the price should fall to at least the target price mentioned above. At target price is just that. It's a target and not a prediction of a market bottom. Following a consolidation in the target area, the price could easily continue lower depending upon market conditions at that time. The time for BULLS to take profits here would have been around $30 to $31 at either the Left Shoulder, the Head, or The Right Shoulder when the Stochastics were giving an overbought reading or all three places after reentering your position when the market again became oversold. So, yes, it's been a field day for any technical analyst to swing trade. If we should get stronger rally now back to the 200 candle MA, which would fill both Gaps, then we could see a rare Diamond formation appear on the chart that would most likely indicate sideways to lower prices as well so, the outlook for buy and hold bulls (in my opinion) is not very good right now. Here is the chart: GNTX - Daily Candlesticks