Cree is ready to light things up!

• Posted by Greg Harmon
• on December 1st, 2015

That is the insides of a Cree LED light bulb. Pretty cool. Will these $10 light bulbs finally replace the incandescent world without any complaints? I do not know. But the stock price seems ready to light up the market.

The stock had an extended run lower from a double top at 75 in the summer of 2014. Since that top it has lost more than 70% of its value, bottoming at 22. But the last 5 months it has built a solid stable base between 24 and 28. It still needs to prove it wants to head higher. But there are some positive signs.

The momentum indicators are bullish. The RSI is making the highs of the year and in the bullish zone, while the MACD is bullish and rising. The Bollinger Bands® are opening higher as well. Tuesday sees the price testing the resistance level at 27.75. The question from here is does it flip the switch and continue over resistance or does the bulb burn out and head back lower.

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