Boston, MA 09/24/2014 (wallstreetpr) – EMC Corporation (NYSE:EMC) (Closed: 29.85 Up 0.57%) is going nowhere for the last week and is trading in a very narrow range of $29.18-$30.18 for the last seven sessions. The data-storage manufacturer is facing headwind from activist shareholders but the rumors of some probable merger & acquisition deals is keeping the stock at the higher levels, actually only 1.09% away from the 52-week high at this point. The high volume of 21.3 million against an average of 16 million reflects the investor interest in the stock pretty adequately.
It is the 9th week the stock is spending in the slightly broader range of $28.60-$30.20 and it looks like only some kind of confirmation of the prevailing M&A rumors will make a lasting impact. It has seen some upgrades from various houses recently but may find it difficult to achieve the higher targets immediately as it is trading at the higher end of quite a few ranges.
The rally from the 2008 bottom of $8.25 hit a high of $28.73 in 2011 before correction set in. The next bounce took it to $30 before the next correction and that was the beginning of the rangebound movements from a longer term perspective. A slightly ascending channel has been the dominant structure for the last 3 years and in the best case scenario, the price may hit the upper boundary of that channel at $32.00-20.
The weekly chart reveals another ascending channel at work from the 2013 low of $21.45. The last rise of the stock has tested the upper end of this channel 3 times already in the area of $29.90-$30.20 and has failed to close above it till now.
The stock is going under an uncertain time despite trading at a multi-year high. The bulls need a quick break above $30.25 to generate momentum in their favor. Otherwise a retesting of $29.00-$28.80 can’t be ruled out. Investors may wait for the breakout to take place before taking any step.
