Putting together a technical & fundamental analysis to predict short term price movement is extremely difficult. Anyone who's been in the game long enough will tell you, but here's my thoughts anyway.
Of all the variables that effect the sentiment of GTAT, the only thing that has changed is the price. Therefore one can only come to the conclusion that based on technical indicators GTAT has been in need of a correction; much like it has had about every 10 days since its been on this high slope 2 month uptrend. So, there is no reason to panic because this is normal and there has been no heavy volume dumping.
One can argue that GTAT could retrace back to $5.50; the 100WMA, but even this would be extremely bullish; baring any negative fundamental news. We would bounce right off it & finish forming the handle of a year long cup & handle formation, and eventually break out over the 200dma and to $10 before 2013 is over.
But, why would GTAT have such a precipitous drop? A Market crash? Nah. The market already corrected about 5% & technically, I think there's a good chance for the market to rebound tomorrow or Friday. Or, some horrible news could come out regarding GTAT, but I just don't see the dominoes lined up for that. If the market decides to get ugly tomorrow, GTAT Market manipulators could take us down to $6.00. That's my downside risk here. For the last 2 months GTAT has been bought up Hand over Fist while short interest increased. These accumulators aren't just going to change their mind; nothing but positive momo in sapphire and incremental improvement in the solar industry..
In 9 trading days, Apple will make an announcement that will set the precedent and the standard for information security forever in that they will unveil a new sapphire coated biometric home button for their next flagship. Huge demand for sapphire is coming. GTAT will see significant revenue increases in Q3 and Q4.
not a bad observation I feel the market will correct more before the next leg up. My hope is that Gtat will be able to withstand some of the market correction. Though yesterday it did get hit harder then most.No crystal ball a lot of uncertainty debt ceiling, middle east tensions which I think will be short lived, and most pros need to see some real expansion growth to keep the multiples up. I just see a healthy correction before the market takes hold. There's so much innovation and new job creation in tech, bio-tech, energy . I'm long