Today we've chosen to take a look at
EMC Corporation (NYSE:
EMC) because it is testing the support of a long-term
support level. As you can see from the chart below, the $14.50 level has prevented a move higher on several occasions since 2003 and it will be interesting to see if this level of
resistance will be able to reverse its role and become a level of support.
We've also noticed that the next major level of support is near $9.50 (shown by the dotted line). The substantial distance between the support levels is important for the bulls to be aware of because a move below $14 will signal a long-term descent toward the dotted support line. Over the next few weeks, we expect that bullish traders will watch for a bounce off the nearby trendline and will close their positions by placing a
stop-loss order below $14.
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