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The daily chart looks like a textbook George Lindsay pattern called 3 peaks
and a Domed house.
However, this also met some if not most of the CANSLIM criteria so the past
4 days can be construed as pullback to the breakout pivot in the $72 area on
falling volume
Without wasting time with the details: Essentially the outcome is retest of
the separating decline low before the final blowoff.
The decline low would be the tag of the 200 day ema at $50.
The pivot retest buy would be 72 +/-
The stop/reverse would be 69 + / -
Excellent r/r.
EMC is VERY heavily owned by institutions, adding the outsized move
potential.
Currently I have no EMC position. I am going to trade both sides on this one
with a long entry and stop/reverse if broken down.
Action in SSTI and NOK shows just how powerful of a leading indicator a
failed breakout can be - as Earl said the other day.
Gitanshu
Disc: Short SSTI.
Attachment Converted: "f:\eudora\attach\EMC3Peak.gif"
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