For today's chart we've chosen to take a look at BMC because it is nearing the support of a five-month trendline. As you can see from the chart below, the sloping support has been able to prop up the price in the past and we will watch to see if this will be the case again. We've included the Parabolic SAR because it has historically created a buy signal each time the price has neared the trendline, which is causing many traders to wonder if this signal will be generated again. Most bulls will remain on the sidelines until the price is able to move above the resistance near $35.50.



BMC_012507.gif





Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.