Power One (PWER) sell-off overdone?

Consider the following (self-updating) graph:

We closed Friday (17th of Sept) at $8.33. You might notice that $8 has been an important resistance point before, it should provide the first line of support. If that doesn’t hold, $7 should.

Falling knives will be falling knives. But at some point these worries will become overblown, $7 might very well be that point, if not before. Asset prices have a habit of exaggerating on the upside, as well as the downside, as we have seen with COCO.

The uncertainty is over 2011 subsidies (this company is in the alternative energy space, it’s a solar converter company). For some perspective, read: