This summer would be as good a time as any for some of the “dead money” technology names to get going. Brocade has often been seen as the quintessential always the bridesmaid, never the bride type of stock, as it is seemingly always rumored to be bought out.
Either way, the weekly chart, below, indicates years of lower highs but higher lows to reach the apex of a symmetrical triangle. If many techs can continue to benefit from rotation, I would be looking at names like BRCD, especially in light of the stock’s impressive action on Friday. The idea is that the triangle is close to resolving, what with all of the pressure having been built up for years.
Specifically, the $6 level, just above, looks to be the first hurdle for bulls to clear, before the second trigger of $6.15 comes into play for a more meaningful move. Bulls do not want to see $5.70 lost again to the downside for this thesis to remain in play.
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