Ciena is showing strength with a high volume wedge breakout. The stock surged from July to September and then corrected with a falling wedge the last two months. Sorry, no prizes for guessing how much this wedge retraced. After finding support near broken resistance, the stock broke the wedge trendline with the highest volume in November. I would consider this breakout valid as long as CIEN holds above 12. Ciena is part of the networking industry, the technology sector and the Nasdaq.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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