Powerwave Technologies (PWAV)

Company

"Powerwave Technologies, Inc., is a global supplier of end-to-end wireless solutions for wireless communications networks. Powerwave designs, manufactures and markets antennas, boosters, combiners, filters, repeaters, multi-carrier RF power amplifiers and tower-mounted amplifiers and advanced coverage solutions, all for use in cellular, PCS and 3G networks throughout the world." (company website)

PWAV 3-month stock chart

Buy

Powerwave hit bottom in October and has been bouncing along generally sideways since then (see sidebar). However, there are signs of life: the one-month moving average has begun to rise; the 50-day moving average has leveled off; and a rough ascending triangle is beginning to form in the chart (bright blue lines above).

  • Price momentum (PPO) — positive, after starting strongly negative three months ago
  • Trend (ADX) — strengthening since mid-December
  • Money flow (CMF) — slight inflow
  • Relative strength (RSI) — neutral now, was very weak three months ago
  • Volume — falling average volume has leveled off, combined with several updays with higher-than-normal volume

Based on technical analysis, MarketEdge has PWAV a "strong buy" in a "weak uptrend."

Sell

loss Bottom line
-4%

PWAV got caught in a wave of selling, and my stop-loss ordered was triggered, limiting the loss to 4%. The plunge took PWAV below the stabilizing 50-day moving average and broke through the lower Bollinger band.