WorldCom Rising
WorldCom
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WCOM |
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PowerRating) had pulled back in recent days on lighter
volume and we noted recently that it was constructive that the former telecom
darling was able to find support along its 50-day moving average. Despite the
pain in the tech sector over the past two months, WCOM refused to buckle as it
held firmly at 15, refusing to retest its December lows.
WCOM broke out above its two-month base Tuesday and even managed
to close above its April 2 high. Volume was decent, but in the coming days I
will be watching to see if buyers can drive WCOM up on increased volume.
WorldCom’s future ties in with the rest of tech since WCOM has
traditionally been one of the main purchasers of the products that so many of
the Nasdaq fallen angels make. With a $57 billion market cap, World Com is still
a tech giant, despite its problems over the past year. The fact that it is
holding up well suggests that it might still be a potential leader that could
help pull the Nasdaq out of its slump.
Until Wednesday,