(But in this case I only have areas as support because that is the buy zones I am looking at)
The market currently is down 21.6% from the all time highs.
A theory or metaphor that i want to take into consideration is this, in sports every year or every other year a player gets a record contract at there position or a record happens an then later that same year a new contract happens and sets a new record.
Why? Because of money. Tv deals companies make more money or there company becomes inflated with profits and they have to adjust pay in order to make there players happy, while also the cap space does increase from year to year.
How does this come into being a contrarian investor? Because the contrarain knows the business is going thru a cycle. As long as the company is a good company, the company will or should always put in higher highs through the course of its history.
On the chart where price bounced off support and reached the an then treated it as support after. The gap between this is about the same distance from where the all time high is to where price is currently at todays price close at 70.08.
Notice how price between the levels are almost 21.6%.
In my view of the current price of the stock, this is a fair value, I'm not saying go all in. But what I'm saying is I think its a good time to buy a small amount of shares, and if price falls to the other support levels it would be time to buy more.
An this is called dollar cost averaging.
An this is what I call a dollar cost averaging stock to own.
I'd bet that was them taking credit for winning the cold war. Now times have changed and that crucial brand image is no longer as popular - quite the opposite globally. Which would stop me going long at this juncture...