The longer-term pattern in EMC Corp. (EMC) has huge upside potential for a thrust above multi-year resistance at 18.50, which should trigger conservative near-term targets of 20.60 and 21.50. Today’s upmove from 17.87 to 18.45 has the right look of the initiation phase of the thrust above resistance. However, my hourly work is very overbought, which suggests to me that for EMC to continue higher directly from here, it must be the subject of some sort of bullish catalyst. Otherwise, the overbought near-term condition should coincide with the advent of a pullback into the 18.20/00 area prior to the next loop to the upside.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.