EMC Tests Major Support

EMC Corp. (EMC) is testing a major support area today. The stock has been in a steady free-fall since mid-March and is now back down to its February/March lows. This support zone, just below $23, held well last summer following a 30% drop from the first-quarter highs. EMC put in a double-bottom during the June/July period before mounting a healthy rebound. By late September, the stock had rallied more than 20% hitting a peak just above $28. EMC has been relatively heavy since then and has been unable to make any progress past a declining 200-day moving average. Last month the stock began a new recovery after piercing the $23 level. By the middle of the month a breakout appeared to be shaping up, but the momentum was short-lived. EMC quickly faded, but the selling since the March 14 peak has been very light. With this key level back in play, another low risk buying opportunity may be developing.

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