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Tickers in this Article: FMCN, VISN, OMC
Focus Media Holding Limited (Nasdaq:FMCN) is a stock in the advertising services sector that is trading near the top of its recent range. FMCN has been trading in a wide range between $21 and $27 for a few months. It recently attempted another breakout above $27 but encountered too much selling pressure to sustain the breakout. However, buyers stepped in very aggressively a few days later on a pullback near $24 and FMCN could be headed for another breakout test. Traders should look for a close above $27 as a possible signal that the breakout is valid. (For more, see The Anatomy Of Trading Breakouts)

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VisionChina Media, Inc. (Nasdaq:VISN ) is another stock in this group that is following the same pattern. It is back towards the top of a wide range and sitting just under an important resistance level. If the stocks in this sector conitnue to climb, then stocks like VISN should benefit from a spillover effect and possibly carry it far enough to clear an important resistance level. For VISN, traders should monitor the $5 level as the most important area on the near term chart.

Omnicom Group Inc. Common Stock (NYSE:OMC ) is a stock in the advertising Services sector that has already moved above its recent base. OMC had been trading in a tight range since November 2010, before finally breaking out earlier this month. OMC just started to pull back from the $50 and could be offering a chance for traders that missed the breakout.

While many traders will often flock to the stock with a news related event, the safer play will often involve the stocks peers. Typically the axiom of "what's good for the goose is good for the gander" certainly applies to the finance world. In this case, trader should keep an eye on the Advertising Services sector as it could remain in play based on recent earnings reports. Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

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The author does not hold a position in any of the companies mentioned above.

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