Brocade. . .Again
This is not the first time I’ve talked about Brocade
(
BRCD |
Quote |
Chart |
News |
PowerRating). But I’m always in favor of going where the action is,
even if I’ve been there before. Today is another day on which Brocade has
something worthwhile to teach us.
Brocade is bouncing from a combination of its 20-day moving average and the
lows of its two-week range. If you look at the chart below, you’ll also notice
that BRCD made an important high on July 17, 2000, around this price level. This
resistance level was broken on August 7, 2000. As we have seen many times,
broken resistance levels often become robust support.
While there isn’t nearly enough volume to get me excited about BRCD’s
immediate prospects for a breakout to new highs, today’s action tells me that
BRCD is continuing to build a trading range on this price level. Given that BRCD
has been in an uptrend since late May, today’s action is a definite plus.
See you tomorrow,
Eddie
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