Last November, we talked to you about Data Storage Companies. They have had a good run since then. The AMEX Disk Drive Index (DDX) is up about 30% since then. It has pulled back a bit in the last few days, but we think this is a good opportunity for you to get in if you missed it a few months ago.

In the chart you can see the previous strong support that the 60-day SMA line (green) has shown for this index. Also, the 21-day EMA line (blue) has been shown to be a point that the index drops below often and then surges back above. At the bottom of the chart, you can see that the Stochastic indicator is very close to an oversold level. Previously this has been a very good indication that a reversal to the upside would be coming soon.

AMEX Disk Drive Index (DDX)

The AMEX Disk Drive Index (DDX) includes some well-known names in the technology world that have performed very well in the last year. Adaptec Inc (ADPT) is up about 60% for the last year.  Maxtor Corp (MXO) is up almost 100% for the last year.  And Seagate Technology (STX) has gained over 40% in the last year.  If you are interested in data storage company investments, these are three good companies to start your research with. If you are looking for a more diversified ETF play, the iShares Dow Jones U.S. Technology Sector Index Fund (IYW) holds some of these companies. You can also find these companies in many mutual funds.