Boston, MA 09\/30\/2013 (wallstreetpr) \u2013 International Game Technology (NYSE:IGT)<\/b> (Closed: $19.23, Down: 6.97%) opened very weak on last Friday and kept hitting new lows for the rest of the session before closing exactly on the day low. The news about the company getting downgraded from \u201cBuy\u201d to \u201cHold\u201d by the analysts of Deutsche Bank invited a lot of sellers. The day\u2019s price action formed a long red Marubozu, the most bearish single candle pattern. Also, a weekly candle that engulfs the entire range of the previous two weeks has a very strong negative implication. The volume at 9 million was about 3 times higher than the average of 3 million.<\/p>\n
It is easy to come to the conclusion that the stock has made a major top and the bull run from the 2012 low of $10.92 has ended. But other observations do not give this certainty yet and force to think otherwise till more confirmation comes. The first thing would be the indicators. Currently, there are no major negative divergences seen in any of the indicators. Weekly RSI is still firmly above the 50 level, which is the characteristic of a bull market and unless this breaks conclusively, the bull trend can\u2019t be taken as over.<\/p>\n
The other thing is the magnitude of the corrections. The last major correction in May \u2013 June 2013 from the high of $18.81 to the low of $15.64 was 3.07 points long. A similar correction from the current high would bring the price near $18. Only a bigger correction would confirm a major bear trend. The bears would obviously point to the clear 5 waves visible in the current rally from the 2012 top. But only a firm move below $18.60 levels would take it the next major support zone in $17.60 – $18.<\/p>\n
Investors could watch the price action around $18 before coming to a firm conclusion about the continuation or end of the major uptrend.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 09\/30\/2013 (wallstreetpr) \u2013 International Game Technology (NYSE:IGT) (Closed: $19.23, Down: 6.97%) opened very weak on last Friday and kept hitting new lows for […]<\/p>\n","protected":false},"author":15,"featured_media":9182,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[2806,2807],"stock_ticker":[],"class_list":["post-9181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-international-game-technology-nyseigt","tag-nyseigt","entry"],"acf":[],"yoast_head":"\n