Don't Ignore This Chart!

California Amplifier (CAMP) Retests Key Support Zone

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A little more than a week ago, CAMP broke trendline resistance after posting better than expected earnings results.  CAMP's top line was $69.2 mil (actual) vs. $68.0 (estimate), while its bottom line also beat Wall Street estimates, $.29 vs. $.25.  The breakout occurred on huge volume and after rising to nearly 22.00, RSI moved into VERY overbought territory above 80 as CAMP needed a breather technically to unwind. Over the past few days that's exactly what we've seen with CAMP's reward to risk from a long entry perspective greatly improving.  The top of gap support resides at 18.75 and the rising 20 day EMA was at 18.69 at last check.  Those two levels along with back test trendline support just above 19.00 should provide an entry zone for those that have been awaiting a pullback.  Take a look at the current technical picture:

Happy trading!

Tom

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. Learn More
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