A month ago today, I first wrote about Titan Machinery (TITN), suggesting that a likely bounce of the 50-day moving average (DMA) would be good for about a 20% gain in a few weeks. I was wrong – it was good for much more!

As I write this, I'm sitting on a gain of more than 30%. Since I bought, TITN has developed a strong uptrend, developing and testing support around $24. Based on that support, I had decided to hold on for a bit to see what happened. Take a look for yourself.

Today, TITN seems to be hitting some selling pressure, after making a new high early in the day. It could find some support at previous resistance near $26.50. However, if it falls through, it could drop down to near $24, which I might consider as an opportunity to add to my existing position. A fall back to the 50 DMA is unlikey in my opinion, but if it did, I would almost certainly buy more.

Short of some really bad earnings news, I think TITN is going to do well in both the short an long hauls. For some more thoughts and technical analysis, check out this Seeking Alpha article.

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