Rockwell Collins (COL)  was the top gainer in the S&P 500 as we approached midday. The stock opened the sessions with a powerful earnings-inspired breakout gap that pushed shares above a major resistance area. This impressive move ends a seven-week consolidation with a decisive upside resolution. COL is now set up well for a fresh rally leg.

Back on Dec. 1, Rockwell's second leg of its post-election surge ran out of steam. The stock had gained more than 17% from the Nov. 9 low and had entered overbought territory. As December played out, COL continued to pullback and after a string of eight straight loses in mid January, the stock returned to key support near $89.50. After basing here for a few weeks, COL returned to rally mode on Feb. 13. By the middle of last month, the stock was bumping up against major resistance near its all-time high.

COL consolidated just below the 2015 highs for four weeks while continuing to put in higher monthly lows. This solid base will provide the footing needed for a new rally leg. Also adding fuel to the fire is a fairly high short interest ratio of 6.3.

In the near term, patient investors should consider the stock a buy on weakness. Major support is now in place between $100.00 and $99.00. A fade back down to this area may be a bit too much to ask but a short-term bull flag or pennant consolidation will be needed fairly soon.

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