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June 09, 2006
Stocks Showing Strength
This next group shows stock exhibiting strength over the last few days and showing good upside volume.
Komag (KOMG) attempted a breakout towards the end of May, but this breakout failed and the stock moved to a new low. While the broader market dipped early yesterday, KOMG opened firm and held above its early June low. The stock finished strong with a long white candlestick on good volume and I would expect a trendline breakout in the coming days. .
RSA Security (RSAS) held firm at the end of May and broke resistance yesterday. While the Nasdaq was breaking to new lows, RSAS was trading above its May lows and showing some relative weakness. The breakout occurred on good volume and this stock will likely lead if the Nasdaq reverses its current downtrend.
Gentiva Health (GTIV) held firm in May and showed some relative strength. This firmness turned into buying pressure over the last seven days and the stock looks poised to break triangle resistance at 18.25.
General Electric (GE) is looking relatively strong. The stock held up pretty good in May and formed a bullish engulfing on 24-May (gray oval). While the broader market swooned the last two weeks, GE held firm and upside volume continues to outpace downside volume. This shows accumulation and I would expect a breakout at 35.2.
Within the biotech group, Millennium (MLNM) is showing signs of life with good volume. The stock bottomed at the end of May and broke above trendline resistance in early June with good upside volume. The stock met resistance at 9.7 yesterday, but strong upside volume suggest more upside in the stock price.
Posted by Arthur B. Hill at June 9, 2006 06:57 AM