EMC Corp. - EMC - close 18.20 change -0.18 stop 17.65
EMC Corporation (EMC) develops, delivers and supports the information technology (IT) industryâ€™s range of information infrastructure and virtual infrastructure technologies and solutions. The Company operates in two business segments: EMC's Information Infrastructure business and the EMC's VMware Virtual Infrastructure business. EMC's Information Infrastructure business provides a foundation for customers to manage and secure their quantities of information, automate their data center operations, reduce power and cooling costs, and information for business agility and advantage. EMC's VMware Virtual Infrastructure business is the provider of virtual infrastructure software solutions from the desktop to the data center and to the cloud. As of July 22, 2009, EMC had acquired approximately 94.2% interest in Data Domain, Inc. (Data Domain). In August 2009, EMC acquired FastScale Technology, Inc., a provider of software platforms and solutions for enterprise IT. (source: company press release or website)
Target(s): 19.00, 19.50
Key Support Areas: 18.00, 17.80, 17.65
Key Resistance Areas: 18.50, 18.85
Time Frame: 1 to 2 weeks
Why We Like It:
EMC is just above a long term pivot level dating back to June of 2007 at $18.00, which is also near its 20-week SMA. On a weekly chart the stock is converging with the pivot level and an upward trend line that began in May 2009. I like the specific technology sector of EMC's business and I believe the stock is poised to bounce here with the overall market. The stock also bounced nicely off of its 20-week SMA and trend line today. I suggest readers initiate long positions at current levels or on a pullback near $18.00. The stock has good support at $18.00, $17.80 (March 30 low - see dashed line on weekly chart), and again at $17.66 (May 7 low). This gives us a good reference point to place a stop just below these levels at $17.58. Our target is $19.00 and our time frame is a couple of weeks.
Suggested Position: June $18.00 CALL at current levels or on a pullback near $18.00, current ask $0.83.
Annotated Weekly Chart:
Entry on May xx
Earnings Date: More than 2 months (unconfirmed)
Average Daily Volume: 25 million
Listed on 5/19/10