Published on 06/20/2006

Sears Holdings Corp (SHLD) has been a bullish stock as the stock managed to make a new 52-week high recently.

Sears Bullish in Bear Market

Sears Holdings Corp. (SHLD) has been quite the bullish stock in this bearish market. As you can see on the chart below, the stock managed to make a new 52-week high about two weeks ago. The trek to a new 52-week higher began with a breakaway gap in mid-March. The stock gradually climbed higher before putting in a second gap, the measuring gap, with gap top support at 151.20. SHLD pushed higher, made a new 52-week higher, then began moving lower as selling pressure from profit taking took a toll on the stock.

SHLD is now trading near the 151.20 gap top support, and is a must watch. I favor a bullish move from here, but will closely monitor technical indicators and place a bullish or bearish trade on the stock if a solid opportunity presents itself.

Rambus Inc. (RMBS) has shown very solid support at 22.20 the past few trading days. Let's take a look at RMBS from a daytrading perspective.

Monday, the stock gapped up, but quickly reversed and began downtrending towards the gap. The stock faded into the gap, and filled it entirely not too long after. We have two things to watch for:

A break of support at 22.20 would likely cause a quick move to the next support level at 22. If support at 22 were to break, the gap up from last Thursday would likely fill.

If support holds at 22.20, the down trendline resistance must be watched carefully. In the event the down trendline resistance is broken, a bullish position should be taken in the stock.

Brocade Communication Systems (BRCD) has been in a sideways consolidation pattern since mid-March with support at 5.50 and resistance at 6.25. The stock is trading at 6.25 resistance. The resistance level resulted from a combination of support turned resistance from before the consolidation pattern began, and proven resistance from a couple weeks ago.

Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.