Oclaro, Inc. (NASDAQ:OCLR) has been in a clear uptrend since early July, supported by the rising 100-day EMA. On Friday, it had a nice move on the upside, closing above all major EMAs on heavy volume. Considering the strong momentum over the past week, I think that the 10 dollars range will be tested in coming sessions.
For this weekend’s post I bought a well-known company that everybody knows that I have a long-term investment on it. This was one of the rare cases where I put some of my savings on a long-term investment specifically when I saw a familiar name taking the control of the company as CEO, that guy was John Chen. Most people don’t know nothing about this gentleman, but I recommend everyone to google the company name “Sybase” to know more about the skills of the guy as a business man.
Some of you, will think it’s impossible to see the same scenario on Blackberry, but I would like to point out that the new CFO of Blackberry is now Steven Capelli, who worked with John Chen at Sybase. Both also worked together at Pyramid Technology, a company that was sold to Siemens. The life is made of coincidences, but this film I already saw in the past. As a shareholder I want to maximize always my investment and I truly believe that will get it here as well. I think Blackberry could be the next big sale for John and his buddy.There has been chatter about a BlackBerry sale for months/years, but with Steven in the team, the puzzle is now complete and the rumors could turn to reality. Keep in mind, the company is now financially stable with a lot of cash and a tremendous patent portfolio. Moreover, it owns QNX, one of the most popular operating systems for in-car infotainment systems. I could write a lot more about Blackberry, Joh Chen and whatever, but my vision is clear in this small introduction. Well, now is time to focus my attentions in the technical chart above.
The stock has made an awesome run since mid of September, but once again the rally stalled around 8.30 price level, which has been a tough level to regain and hold all year long. On daily technical chart, price is trading above all major exponential moving averages, MACD is rising in buy zone, while RSI is around the 60 level well under concerned overbought levels. This is indication of bullishness to continue.
The fact that the 50-day exponential moving average is also above the 200-day exponential moving average (golden cross), the trend is considered upward. Considering all above factors, the probability of a breakout is higher. A close above 8.36 would be required to turn the medium-term bias significantly toward buying trades. Definitely on watch.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.