MDA McDonald Dettwiler & Ass.

mda jan 2011 1 mda 2011 2

This is a good example of a double top, a rather precise one from which the stock has dropped almost 13% already. For the record , back in August last year, we suggested that the stock was a sell at about $50.(see chart below and previous blogs). This is a great company but so is a single line move from $15 to $55. The possibility exist that the stock drops to $35 (in a bull market) or further if we get a double dip type of scenario. This is a simple case of buy low/ sell high. Alternatively rather than selling one could use a stop-loss at about $46