Motorola Solutions finished last week as the S&P 500’s top gainer.  The stock surged over 4% Friday on its heaviest upside trade since February.  This powerful breakout move has left behind layers of support while setting the stage for more upside.  We believe MSI is on course for a retest of the 52 week high set back in August.

As a new rally leg develops we consider MSI a buy on weakness.  The stock has a very solid support zone in place between $88.50 and $86.50.  This key area includes the September high near the upper band and Friday’s powerful breakout gap near the lower band.  With shares coming off a deeply oversold reading late last month and solid footing underneath a rally up to the $94.00 area appears likely.  In addition MSI sports a fairly high short interest ratio of 7.4.  On the downside, a close back below $86.00 would indicate more range bound trade is ahead. 

At time of publication we do not have a position in MSI.