Technical Analysis of Financial Markets

Tuesday, May 30, 2006

Genentech, Inc. (DNA) - Triple Bottom Reversal ?

This one is awkward; it looks as if Genentech has bottomed-out over the past month creating a Triple Bottom. The immediate resistance and 50-day moving average seems breached. However, the main seven month downtrend seems intact. Furthermore, the on balance volume indicates that money is flowing out. A firm break and close above say $83.50 should see this test the 200-day moving average around $87-$88. Otherwise, a selloff at $83. Cross-post:

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