An Industrial Breakout in the Making

SPX Corp. (SPW) provides flow technology products, testing and measurement equipment and other industrial machinery and services to customers worldwide. The stock is trading on heavy volume and testing the upper range of a three-month price channel.

The current consolidation resembles the one that took place in the first seven months of 2011, which can be seen on the weekly chart. Both of the range lows are in the $72.50 area, and the regression line, or best-fit straight line of price within the first channel, is providing upper-range resistance for the second pattern. A cross of the 50-day moving average below the 200-day average preceded the breakdown from the 2011 channel, and a cross of the 50-day average above the 200-day preceded the formation of the current channel....206 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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