OLED finds Support

Universal Display, despite crushing Wall Street's targets in the fourth quarter took a dive due to an outlook for modest growth projections for the new fiscal year.

I see this as an opportunity for a purchase into a good company trading at an attractive discount. The market for light-emitting diode screens, however cyclical, will continue to grow in leaps and bounds. Management also expects industry annual production capacity to grow 50% larger over the next two years.

It seems that OLED has tested and found a support at 0.618 (approximately $120) on the Fibonacci retracement levels (1 year) from its recent highs. Absent of any negative news, I expect it to rise steadily over the next 40 days or earlier to near the $140 level where it will close the recent gap created in the charts.

Happy trading!