Boston, MA 10/17/2013 (wallstreetpr) – America Movil SAB de CV (ADR) (NYSE:AMX) (Closed: $21.75, Up: 4.22%) remained absolutely flat till the midsession on Wednesday, when the news about the company withdrawing its bid for Koninklijke KPN N.V. (ADR) (OTCMKTS:KKPNY) came. The stock promptly jumped but faced selling pressure at the higher levels to close a bit lower finally. On the other hand, KKPNY lost about 9% in the OTC markets. The volume for AMX exploded at 21 million against an average volume of 7 million only. The price action produced a big green candle with a long tail on the upper side showing the profit booking.
The stock has been in a huge bear market since the latter part of 2007. In the period of 2003 – 2007, the stock had a golden run as it reached an amazing high of $34.57 from the 2002 bottom of $1.92, very much in an uninterrupted fashion. The bear market of 2008 turned out to be very severe though, bringing a crash in the stock where it lost about 70% of its value in a matter of months. In 2009, it made a Double Bottom in the zone around $11.60 and bounced back to $29.81 by early 2011, exactly 80% retracement level of the entire fall. The bear market that started from that 2011 top has not been finished yet but it is taking support from $18.26 – $18.39, exactly the 61.8% retracement level of the rally from the 2009 bottom to the 2011 top. This zone also coincides with the trendline connecting the 2003 bottom & 2009 bottom, making it a very strong support zone. If this area can manage to remain intact, then the price can rally and most probably, make a huge Triangle.
But any rally would be confirmed only on a move above $22.70, the historical supply zone and $23.20, the channel resistance. Aggressive investors could accumulate the stock on dips with a stop loss below $17.