Sony Corp. (NYSE:SNE) — This Japan-based company manufactures a strong line of electronic products and is a leader in the retail electronics area. But Sony suffered from delays due to the tsunami and has been confronted with the strong possibility of a global economic slowdown. Furthermore, yesterday’s weak consumer confidence numbers could have an impact on Sony’s sales.
Following the downgrading of its stock by a team of analysts, SNE broke down from a double-bottom at $24, falling to $20 where it found some buyers. But the rally is probably going to run into difficulty at the conjunction of its 50-day moving average, its bearish resistance line (red dotted line), and the double-bottom failure.
Traders may get a small bounce from yesterday’s close, but investors should sell into strength.
- See Sam Collins’ Daily Market Outlook: Can We Really Keep This Market Going?
- See Serge Berger’s Daily Market Outlook: Bulls Not Being Put Out to Pasture Yet
- See Serge Berger’s Trade of the Day: A Rare Pick for an Overbought Market
