Nidec Corp (NYSE:NJ) is a manufacturer of spindle motors for computer hard disk drives and produces a variety of other small precision brushless DC motors. In addition to spindle motors, they focus on the production of: small precision brushless DC motors used in continuous-duty applications such as CD-ROM drives, CD-read/write, DVD drives, floppy disk drives, as well as in office equipment such as facsimile machines, laser printers and photocopy machines; brushless DC fans, which are incorporated in computers, game consoles and other electronic equipment to disperse heat and lower the temperature of critical components; mid-size brushless DC motors used in household appliances, automobiles and industrial equipment; machinery; and other products. The Company currently operates through 88 subsidiaries located in 13 countries, and 7 affiliated companies located in 5 countries. Source: Bigcharts

Technical Analysis of the chart below shows that in the past year, Nidec stock has bounced off key support near $15.50. I expect to see shares climb to at least $23.00 without meeting much resistance. In the past week, the MACD and DMI have both given you the green light to proceed with your trade and momentum is now on your side!

Recommendation: Buy shares of NJ up to $20.00 and hold for at least six months. Place your stop loss just under minor support near $17.50 per share.

Source: Bigcharts