Corning is setting up for another breakout higher

• Posted by Greg Harmon
• on March 5th, 2015

Corning is not the company that your mother or grandmother once new. Casserole dishes are a thing of the past. The hot product now is Gorilla glass. It is the majority of what you see in the new Samsung S6 phones. And the stock has been doing really well on the back of this product shift.

The chart above shows just the last 6 months of price history. But there is a lot to see and learn from it. First is the risk side. The move lower in September happened shortly after a tightening of the Bollinger Bands® (like now) and a move below the 20 day SMA. Then the stock ran along the Bollinger Bands lower. Watch for this to stop any trade in the short run.

But the price is a holding near the 20 day SMA now as those Bollinger bands tighten. The RSI is holding in the bullish zone and the MACD is falling but at a very slow pace and shallow angle as price consolidates. This is set up for a break out above resistance to the upside. And a move over that resistance at 25 would target 26.70 as it projects out of the ascending triangle. If you are ready for the break maybe you can pound your chest like a gorilla as it rises.

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