Agilent Technologies (A) is up over 2% today on extremely heavy trading. This powerful surge has pushed the medical research company past heavy resistance and into new multi-year highs. Agilent has been moving quite well since the beginning of January and is in the process of leaving behind layers of solid support. Shares are setting up well for a continued rally.
After a strong rebound off the December low, which held key support near the multi-week November lows, Agilent entered a narrow consolidation pattern just above its 50- and 200-day moving averages. The stock remained in this pattern -- and below the November and October lows -- until last Friday. Agilent gained over 3% that session as investors aggressively bid for shares on the heels of a big upgrade on Jan. 4. Despite the big move last Friday, Agilent was still below an extremely heavy supply zone between $48 and $49. Following today's ramp Agilent is beginning to put some distance on the multi-month 2015 highs.
Agilent is now a low-risk buy on weakness. The stock has a solid support zone in place between $48.20 and $47. This area includes the November high near the upper band and the December peak near the lower band. Once Agilent begins to put some distance on the $49 area, it will have plenty of room to run. In the meantime, patient investors should take a more positive view of the action.Click here to see the below chart in a new window.