Avaya Global Connect - Short Term
Avaya Global Connect provides services of software
integration, installation, commissioning and service
support. It also diversified into manufacturing multiple
access radios and point-to-point digital radios and
manufactures voice processing systems, digital
paradigm exchanges. From the technical picture, we
note that the stock had been on a consistent down
trend since Dec 2005 and every rise was seen as an
opportunity to sell. Having moved to its recent low
around 147 levels, it shifted into a sideways phase,
trying to consolidate near the lows. In the attached
daily chart, we see that the recent surge was seen
with prices moving out of its upper Bollinger band with
widening formation. The strong volumes growth in
recent week and prices sustaining at higher levels are
positive indications. RSI momentum indicator has
moved into its bullish zones indicating some strong
buying action in the counter.
Hence we suggest a buy at the current levels
with stop of 20 points and targets of 231/257/280
levels in near term.