Figure 1: Daily chart of Ciena.
|The daily chart shows the strength of the breakout. CIEN tested support just below 6 three times (gray arrows) and then shot above 7 with a series of gaps from December 31 to January 16. These gaps have held and should be considered breakaway gaps. In addition to the gaps, volume expanded on the advance and this shows new buying pressure. The high volume advance solidifies the lows around 5.7 and further upside should be expected as long as this major support level holds (thick green line).|
|Figure 2: Weekly chart of Ciena.|
|Graphic provided by: MetaStock.|
|The weekly chart offers perspective and provides an upside target. The stock advanced from 2.41 to 7.74 and then consolidated from Jan-03 to Jan-04. Relative to the prior advance (Oct-02 to Jan-03 or four months), the 11-12 month consolidation was a bit long. Although not perfect, the pattern looks like an elongated symmetrical triangle and the breakout signals a continuation of the Oct-02 to Jan-03 advance. The first upside target would be the Mar-02 high around 11 and the second upside target would be the Oct-01 high around 22. These levels could create a resistance zone with a median target around 16.5 (22 + 11 = 33, 33/2 = 16.5)|
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|Phone # for sales:||3215345465|
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