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One for Investors and Traders: AUO

by Sam Collins 08/13/09

AU Optronics Corp. (AUO) -- This Taiwan-based maker of thin-film transistor liquid crystal display panels (TFT-LCD) and other flat panel displays is trading in a broad bull channel with a bottom at $10 and top at more than $13.

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But within the channel is a second formation -- a trading rectangle with a breakout point at just above $12.

Buying volume has been picking up and Moving Average Convergence/Divergence (MACD) is showing AUO is very undervalued.

At less than $11, this S&P five-star-rated stock is at a good support area and could be added to both trading and longer-term portfolios.

The target is $16.

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