Tellabs Charts: Topside Break Possible

Continuing with players in the smartphone arena, today we look at Tellabs(TLAB Quote).

Like Palm(PALM Quote) and Xilinx(XLNX Quote), the long-term timeframe chart exhibits good volume characteristics and a huge tradeable range.

That range spans about 45% from top to bottom ($4.60 to $6.75). The bonus is that TLAB has the possibility of a topside break once enough consolidation occurs. If that happens, you do want to be around for it.

In the monthly chart above, note how the high-volume bar from January 2008 stopped this advance. Volume simply wasn't sufficient enough to continue higher -- at least not yet. Currently, from the long-term perspective, TLAB is building strength to eventually trade higher. From a long-term perspective, it is now trading sideways but looks to attack at least the $9 area before the advance is completed on this timeframe.