Since aggressively rebounding off the 50-day moving average two weeks ago, this big-earning stock has settled into a solid Darvas Box range.
Just last week, we saw stong buying come in on above-average volume, which tells us interest is starting to pick up for this stock.
Now, it looks like this stock may be ready to test the 50-day moving average once again. A test of the 50-day average, especially for a stock that has shown a tendency to bounce off this line, is a perfect “pocket” purchase opportunity.
If this stock pulls back to the 50-day average and then reverses higher on increasing volume, we want to be buying.
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