Chart of the Day: Cree

This is a segment of a column that was originally published on RealMoney on May 15 at 12 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.

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Cree (CREE Quote) got clobbered in 2006, dropping over 20 points between April and December.

A year-end bounce failed, with the stock retesting the low in late January. Support held, and price has been on the recovery trail since that time.

Note how it shot above the 200-day moving average on strong volume three weeks ago.

The stock is still testing the boundaries of the late-April surge and needs to hang on in order to continue the nascent uptrend.

Accumulation looks constructive, so be on the lookout for buyers to emerge in the next week or two.

After it trades above 20 for a few sessions, momentum should increase and carry price another 3 to 5 points.

(Please see chart below.)

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