Benchmark Electronics Inc

By root | September 05, 2007 AAA

For today's chart we've chosen to take a look at Benchmark Electronics Inc. (NYSE:BHE) because several indicators are suggesting that the stock is under accumulation. As you can see from the chart below, the Bollinger Bands have recently started to diverge away from each other, which is a signal that the volatility in the stock is picking up. The long green candles are suggesting that the bulls are starting to enter the stock, which many traders will use as confirmation of an expected move higher. We'll keep a bullish outlook on this stock until the price moves below the center average, which as you can see has acted as a level of support/resistance in the past.

We've also added the On Balance Volume indicator because it started to slop upward once the price bounced off the support of the lower band. This upward sloping indicator will be used by traders to confirm that the momentum is on the side of the bulls.

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