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For today's chart we've chosen to take a look at EMC Corporation (NYSE:EMC) because it is nearing the support of its 200-day exponential moving average. As you can see from the chart below, the stock dropped for eight consecutive sessions leading into today's open. Luckily for the bulls, today's price action put an end to this story and several technical indicators are now suggesting that the bearish momentum is getting exhausted. We've added the Relative Strength Index because it will likely be used by short-term traders to suggest that price has overreacted. The reading of 35 suggests that the bearish run is oversold and that the stock is setting up for a move higher. We'll watch for the bulls to enter near the moving average and see if they can send the price back toward the higher near $25.50.

We've also identified other major levels of support, which will vary in significance depending on each trader's risk tolerance. Short-term traders will likely set their stop-loss orders below the moving average (near $18.25). Medium-term traders will likely pay closer attention to the trendline (dotted line) as a signal of where to exit. Lastly, we believe that long-term traders will use the strongest support, which is found near the horizontal trendline at $15, to determine where to place their stop orders.

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