Computer storage firm EMC (EMC) is having a good year, despite a selloff since the stock's highs in late March. Shares are up more than 12% year-to-date, besting the broad market by a factor of 2. Now, though, EMC could be in store for higher ground after a key reversal in shares. Here's why:
EMC made a bottom back at the start of June -- a low signaled by a bullish engulfing candle that broke the downtrend that had been driving shares lower since April. Since then, shares have been trading in an uptrend channel. While the channel in EMC is only in its early stages, it's been well defined by price action in shares (support and resistance each have been hit twice), and with EMC testing support this week, now's as good a time as any to be a buyer.
Momentum confirms the reversal in EMC right now, a nice added bit of evidence that EMC will continue to trade in the channel. If you decide to buy the bounce off of support here, risk management is key. I'd recommend placing a protective stop just below trend line support.As of the most recently reported quarter, EMC was one of Ken Fisher's top holdings. (For more on Fisher Investments' portfolio, check out "Buy Ken Fishe'rs 5 Favorite Stocks.")
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV