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Emulex ( ELX) is a provider of a range of network convergence solutions that connect servers, storage, and networks within the data center. This stock is trading up 6.5% at $7.42 in recent trading.

Today's Range: $6.96-$7.66

52-Week Range: $5.86-$11.19

Volume: 1.8 million

Three-Month Average Volume: 1.1 million

>>Top 5 Tech Stocks in a Down Market

From a technical perspective, ELX is soaring higher here on above average volume. This move is coming off of a near-term low of $6.38, which also marked an extreme oversold condition for the stock. Prior to this bounce off of $6.38, shares of ELX had a relative strength index reading of below 30.

Traders should now look for long-biased trades if ELX can hold its near-term breakout above $7.29. Look for a sustained trend above $7.29 with strong upside volume flows that register near or above 1.1 million shares. If we continue to see that action, then ELX should easily re-test and possibly take out its 50-day moving average at $8.20 and its 200-day moving average of $8.31 in the near future.

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