After a big surge in October, Qlogic (QLGC) moved into a consolidation as volatility contracted. Notice that the Bollinger Bands contracted and the Bandwidth moved to its lowest level of the year. The stock is showing some signs of buying pressure with two white candles over the last five days. A follow through breakout at 12.6 would signal a continuation of the October advance.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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