EMC has quickly faded following its powerful two-week bull run off the late September lows. Three days into October, the stock had been easily moving past the previous month's high. A huge upside jolt came on Oct. 8 as big buying wave pushed EMC past a very heavy 200-day moving average. But two days later, with shares up over 25% in nine days, the stock completely ran out of momentum. The steep pullback that followed has dropped shares back down to a key support zone and a low-risk entry opportunity for patient bulls.
For patient investors, this sideways action should be viewed as a positive. If the current basing action continues to strengthen, EMC will have solid footing in place to mount a healthy rebound.
On the upside, EMC still has an overhead 200-day to deal with. A close back above the $26.50 level would be very encouraging for the bulls.