Break-out to the upside.

Automotive Holdings was reviewed just two and a half weeks ago when the share-price was $3.79 following a positive profit report for the 1H 2015.

What was of interest to me reviewing its chart again today, was that the multiple moving averages had at that time crossed over, giving an entry signal.

Since then the share price has risen through the trading range, broken the resistance of the upper level, and is now about to test resistance at $4.40 of the high 1 year ago.

My previous conclusion was that when  this happened it would provide an entry signal for further possible gains, with a target of $5.

On the other hand the RSI is high and approaching the overbought level at 70.

So perhaps we should expect a pause from trending or a retracement, before seeing such substantial gains.

Categories: Chart Analyses, Company review, Technical Analysis