BBD.B Bombardier, March 2010

 bbd.b march 2010 2 bbd.b march 2010

Bombardier is a model EW stock doing exactly what one would expect. It did a beautiful 5 waves down, showing alternation between 2 and 4 and the last thrust out of the wave 4 triangle equates pretty precisely with the mouth of the triangle AND the low occurs more or less straight under the apex of same triangle. No wonder we felt very comfortable recommending a buy at around $2.25. Subsequent to that the stock has continued to be a model citizen in that it has done a model a-b-c retracement, pretty well to the 62% level and just a little above the wave 4 level. The wedge is fairly plain to see and therefore we would sell if you still owned it.

However looking at the longer term, given that the stock came from $25, is an infrastructure play if there ever was one, is the only manufacturer (apart from Brazil’s aircraft manufacturer) in this particular space and has had some good orders recently. it is entirely possible that we are on a real bull market for this one. So we would keep monitoring this with an eye to perhaps buy it back sooner than later. Click on the charts to enlarge.